SM, German bank credited for Adopt-a-School Program support

MANILA, Oct. 6 (PNA) -- The author of the highly successful Adopt-a-School Program, Cebu Rep. Eduardo Gullas, has credited SM Prime Holdings Inc. (SMPH) and Deutsche Bank AG for their nearly P10 million in fresh contributions to new projects.

Gullas cited SMPH and SM Foundation Inc. for constructing under the program 14 new classrooms (seven school buildings with two classrooms each) at a total cost of P7 million, to include toilets, desks and chairs, ceiling fans and blackboards.

He also lauded Deutsche Bank and SMPH for jointly putting up a four-classroom, two-level school building, with furniture and equipment, a total cost of P2.7 million..

Gullas has been challenging big business to devote more social development funds to energizing the Adopt-a-School Program, stressing the need for government and the private sector to combine forces in willfully resolving the school system’s crippling resource gaps.

An educator, Gullas is author of the 1998 law that established the Adopt-a-School Program, which has so far generated more than P4 billion in contributions from the private sector.

Under Republic Act 8525, the program spurs private entities to help finance public schools in all levels in exchange for additional tax gains.

Contributing firms or individuals may deduct from their gross taxable income the amount equal to 150 percent of their aid. For instance, should a firm spend P300,000 to build a new classroom, it may claim a P450,000-deduction.

To claim deductions, the valuation of aid other than cash would be based on the acquisition cost or purchase price of the property, equipment, materials and services supplied. Contributed used properties are subject to depreciation.

Qualified aid may be in the form of support for faculty training, the construction and upgrading of school facilities, or the supply of textbooks and other teaching materials, among others.

“Congress conceded these lucrative tax privileges precisely to allow private entities to get more value for their money, while encouraging them to heartily support our schools,” Gullas said.

Controlled by retail and banking magnate Henry Sy Sr., SMPH is the country’s largest mall operator. The firm operates 30 malls nationwide with an aggregate shopping area of more than 390 hectares. SMPH is expected to generate P18.5 billion in revenues this year from rent, cinema ticket sales and amusement income.

Founded in 1870, Deutsche Bank is the largest lender in Germany, and one of the world’s leading financial institutions, with 1,600 offices in 76 countries, including the Philippines.

This is not the first time that SMPH and Deutsche Bank supported the Adopt-a-School Program.

In 2007, SMPH contributed P5.25 million to build two-classroom school buildings for seven schools.