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Viewing cable 06CARACAS1781, NOMINATION FOR THE SECRETARY'S CORPORATE

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Reference ID Created Released Classification Origin
06CARACAS1781 2006-06-16 19:50 2011-08-24 01:00 UNCLASSIFIED Embassy Caracas
VZCZCXYZ0006
RR RUEHWEB

DE RUEHCV #1781 1671950
ZNR UUUUU ZZH
R 161950Z JUN 06
FM AMEMBASSY CARACAS
TO RUEHC/SECSTATE WASHDC 5089
INFO RUCNDT/USMISSION USUN NEW YORK 0299
RHEHNSC/NSC WASHDC
RUMIAAA/HQ USSOUTHCOM MIAMI FL
UNCLAS CARACAS 001781 
 
SIPDIS 
 
/////        /////        /////       /////       ///// 
 
C O R R E C T E D   C O P Y 
 
DUE TO MINOR CHANGE IN TEXT 
 
/////        /////        /////       /////       ///// 
 
 
SIPDIS 
 
EB/CBA NSMITH-NISSLEY 
 
E.O. 12958: N/A 
TAGS: BEXP EINV ELAB ERTD SENV VE
SUBJECT: NOMINATION FOR THE SECRETARY'S CORPORATE 
EXCELLENCE AWARD 
 
REF: SECSTATE 064726 
 
1.  (U) Embassy Caracas is pleased to nominate Citibank 
Venezuela for the Secretary's 2006 Award for Corporate 
Excellence.  American companies operating in Venezuela today 
face significant challenges, including threats to property 
rights and an uncertain judicial environment.  Intense 
adversarial U.S.-Venezuelan relations, occasional protests 
(often BRV-orchestrated), and sporadic expressions of 
anti-American sentiment create additional challenges for 
Americans working in Venezuela.  In the face of anti-private 
sector and anti-U.S. rhetoric, Citibank has engaged its 
community as an exemplary corporate citizen. 
 
2.  (U) Citibank focuses on building economically strong, 
vibrant, and self-sustaining communities and schools with 
both grants and contributions of volunteer time.  Partnered 
with Junior Achievement's Elementary School Program, Citibank 
improved the infrastructure of two Caracas public schools and 
provided courses about the economy, finance, and banking, 
improving the quality of education for 1,813 students. 
School infrastructure improvements included the installation 
of doors and plumbing for bathrooms, waterproofing of the 
roof, installation of water tanks, and repair of the control 
board at the water pump rooms.  Through the "Banks in Action" 
program, Citibank also taught 30 high school students the 
basics of banking, the importance of saving money, and how to 
manage a bank.   Since 2001, Citibank has supported Operation 
Smile Venezuela, an organization that helps children with 
cleft palate.  During 2005, over 100 Citibank employees 
volunteered in community activities. 
 
3.  (U) As an example of competitive and innovative 
activities, Citibank is committed to micro enterprises. 
Citibank organized courses in entrepreneurship and 
leadership, marketing, budgeting and cash flow, taxation, and 
balance sheet management for micro enterprises.  This 
training helped entrepreneurs who were generally in the 
start-up phases of their businesses.  Citibank thus assisted 
many Venezuelan entrepreneurs to start up their firms.  For 
2006, Citibank has designed programs to provide technical 
assistance through volunteers to micro enterprises.  In 2005, 
Citibank bestowed its Global Micro Entrepreneurship Award on 
the most successful micro enterprises in Venezuela -- 6 from 
Caracas and 5 from the Provinces.  Citibank commits 
significant resources to the creation of such enterprises, 
which are crucial to generating new jobs for Venezuelans and 
improving the quality of life in their communities. 
 
4.  (U) As a good Corporate Citizen, Citibank scrupulously 
complies with Venezuelan and U.S. laws, particularly with 
respect to anti-money laundering and transparency.  In 2005, 
the Chavez Administration imposed increasing control over the 
banking sector, directly affecting Citibank's business. 
Citibank has adapted its business to the new requirements, 
including implementing new compulsory loan categories 
mandated by law at preferential interest rates.  In this 
challenging environment, Citibank developed an innovative 
investment product, which LatinFinance magazine awarded as 
the "2005 Deal of the Year" in derivatives.  This credit 
derivative for local currency sovereign bonds transfers local 
currency default risk to investors, allowing financial 
institutions to better manage their exposure.  Citibank has 
strong relationships with its labor unions and, based on 
feedback from its employees through annual surveys, 
continuously improves internal processes and procedures. 
 
5.  (U) At a time when the Venezuelan government is attacking 
free enterprise writ large as the primary  means of economic 
development, as well as U.S. interests in the country, we 
believe that recognizing Citibank's achievements and 
steadfast commitment to corporate social responsibility and 
corporate excellence in Venezuela would be especially 
meaningful.  While the Government is intentionally attempting 
to sour relations with the United States -- which has made 
some U.S. companies keep a low-profile -- Citibank is willing 
to stand up and be counted. 
WHITAKER