Lawyers representing eight insurance companies argue their clients are being forced to do business with state-owned insurance company – NamibRe by the Minister of Finance. They said Calle Schlettwein is enforcing a draconian law to compel them to do so, which according to them undermines their liberty and the rule of law. In an urgent application, filed before the High Court, Schlettwein is seeking relief to force such companies to sell their insurance in Namibia as opposed to doing so in South Africa. The Finance Minister claims that at least N$1 billion leaves the country annually as a result of this. The Minister is also asking High Court Judge Masuku to rule as valid the Namibia National Reinsurance Corporation Act, which would compel insurance companies to keep the money inside the country or to imprison the CEOs of such companies if they breach the order by the High Court. In terms of those measures decided by Schlettwein, insurance companies are required to cede 12,5% of each insurance contract with a value exceeding N$100 000 in reinsurance to NamibRe, to curb flow of capital outside the country by insurance companies. The companies dragged to court by Schlettwein include, Hollard Insurance Company of Namibia, Hollard Life Namibia, Sanlam Namibia, Santam Namibia, Old Mutual Life Assurance Company of Namibia, Outsurance Insurance Company of Namibia, TrustCo Insurance as well as TrustCo Life. During his arguments today, Senior Counsel Raymond Heathcote submitted that such a law undermines the rule of liberty on how their clients can do business with. He also said, even if such companies choose to reinvest such monies with NamibRe, the state-owned company has capacity flaws to reinsure such monies in Namibia. Heathcote added that the balance sheet of NamibRe, which is the only re-insurer in Namibia, does not allow them to do so and are subsequently forced to do business in South Africa. Raymond argued that NamibRe will be forced to compete with local insurance companies, by taking on their clients, to further keep the money in Namibia which according to him is illegal. Heathcote suggested that NamibRe should instead bear the blame of insurance companies opting to instead reinvest their monies in South Africa, due to such flaws. Heathcote pleaded with judge Masuku to dismiss the application with costs in his submission. Six of the companies are also seeking the court to declare the Namibia National Reinsurance Corporation Act as unconstitutional.