DRAFT VERSION

Under the Article 19, paragraph 2, point 1 of the Law on Public Enterprises (“Official Gazette

of RM” no. 38/96; 09/97; 06/02; 40/03; 49/06; 22/07; 83/09; 97/10; 06/12; 119/13; 41/14;

138/14; 25/15; 61/15; 39/16; 64/18 and 35/19), the Management Board of the Public

Enterprise Communal Hygiene – Skopje, on the _______ regular session held on ________

2019, enacted the

STATUTE

Of the Public Enterprise Communal Hygiene – Skopje

1. GENERAL PROVISIONS

Article 1

The Statute of the Public Enterprise Communal Hygiene – Skopje (hereinafter: The

Enterprise) regulates the organization and the activity procedures, the management of The

Enterprise, the general acts and procedures delivery, and other issues significant to perform

activities and the operation of The Enterprise.

Article 2

The Founder of The Enterprise is the City of Skopje entitled to all rights and obligations

arising from the Law and other regulations.

Article 3

The Public Enterprise Communal Hygiene – Skopje is established to execute communal

services as activity of public interest.

Article 4

The Enterprise is organized as a public entity by the disassociation / unbundling of the former

Public Enterprise “Komunalec” – Skopje to multiple public entities under the Decision no. 02

– 8800/7, date October 8, 1992. The Communal Service Activity is organized since 1906.

The Decision under Court Register 16602/92, date December 29, 1992 discloses registration

of an organization of a Public Enterprise unbundling, and the title of the company is Public

Enterprise “Communal Hygiene” Unlimited, Skopje.

The Decision under court registration number 1470/2001, date October 3, 2001 stipulates

harmonization / compliance of the Public Enterprise “Communal Hygiene” Unlimited

Company, Skopje with the Law on Public Enterprises under the name as The Public Enterprise

Communal Hygiene – Skopje.

Article 5

The official language of The Enterprise is the Macedonian Language and its Cyrillic Alphabet.

The Albanian Language and its Alphabet is an official language where it is in use by 20% of

the citizens in Skopje.

2. COMPANY AND ADDRESS

Article 6

The Company of The enterprise is:

Public Enterprise Communal Hygiene – Skopje

Ndermarrja publike Higjiena komunale – Shkup

Short title of the Company:

PE Communal Hygiene – Skopje

NP Higjiena komunale – Shkup

Article 7

The official address of the Enterprise is in Skopje, st. 516 no. 10

Article 8

The Management Board, on a prior consent / approval by the Founder, shall decide on the

change of the Company and its address.

3. STAMP AND ADMINISTRATION SEAL

Article 9

In the course of its operation, The Enterprise owns its Stamp and Administration Seal.

The Stamp is round, 32mm diameter, with engraved text on the upper side stipulating: Public

Enterprise Communal Hygiene – Skopje; bottom side text engraved stipulating: Ndermarrja

publike Higjiena komunale – Shkup.

The Enterprise owns and uses a smaller round-shape stamp, 25mm diameter, with shorten

version of the name of the Company: PE Communal Hygiene – Skopje; NP Higjiena

komunale – Shkup.

Both stamps include number of issuance.

Article 10

The Enterprise owns an Administration Seal in rectangular shape with dimensions 60mm x

30mm and, with engraved text stipulating:

Public Enterprise Communal Hygiene – Skopje

Ndermarrja publike Higjiena komunale – Shkup

Number/numer _______________________

Date/data _______________________

Article 11

The manner of use, management and storage of the Stamp and the Administration Seal of

the Enterprise is regulated with a Decision made by the Director General in accordance to

the Law.

Article 12

The Enterprises owns its Logo for visual identity, a clear and recognizable image of the PE

Communal Hygiene – Skopje. The Logo includes the following symbols:

- A Circle - Shape associating to a continuous movement, activity, development,

energy, completion, and encompassment;

- A Rainbow – a symbol of purity and freshness after cleaning;

- A Trail of a Broom – associating to sweeping activities;

- Skopje – simplified symbol of the City of Skopje – The Stone Bridge over the River

Vardar, and

- A Hand – symbolizing the care provided by The Enterprise in charge for the

cleanness of the city.

- The orange colour symbolizes the energy aspect, warmth, comfort, ability and

positivity in order harmonization of the above-mentioned symbols in unity

associating cleanness, and in order to extend preservation of the tradition to

using the designated colour.

4. ADVOCACY AND REPRESENTATION

Article 13

Within the scope of the authorizations, The Enterprise is represented / advocated by the

Director General of the Enterprise.

The Director General is entitled to authorize another person to advocate and represent The

Enterprise through Proxy / Letter of Authorization.

The content and volume of the authorization referred to in the previous paragraph is

stipulated by the Director General.

5. ACTIVITY OF THE ENTERPRISE

Article 14

The Enterprise is a legal entity performing an activity of public interest in the area of

communal services.

Article 15

In legal transactions and in relation to third parties, The Enterprise acts on its own behalf and

on its own account, but only within the activity registered in the official register.

Obligations against third parties undertaken within its own representation and under its own

account,The Enterprise is liable with the entire property.

Article 16

The main activity of The Enterprise is:

- 38.11 Collection of Non-hazardous Waste

- 81.29 Streets cleaning, and snow and ice elimination;

In addition to its main activity, The Enterprise performs the following activity:

- 37.00 Wastewater disposal;

Article 17

The Enterprise performs its activity on permanent basis with no discontinuation and the

operations are public and transparent in accordance to the Law, this Statute and other

regulations which regulate the terms and manner of public interest activity performance.

The Enterprise is obliged to provide Public Representation and Transparency related to its

Financial Operations within the Material and Finance Management in accordance to the Law,

this Statute and International Finance Standards established for the Public Sector.

6. ORGANIZATION OF THE ENTERPRISE

Article 18

Within the performance of the activity in the area of public interest, The Enterprise is

organized to provide unity, efficiency and maximum success in the process of operation.

The activity of The Enterprise is organized within Organizational Units.

The Organizational Units of The Enterprise represent and act as one single unity of The

Enterprise, and individually fail the capacity of legal entities.

Article 19

The Enterprise is organized of the following Organizational Units:

1. SECTORS

- Management Support;

- Communal Hygiene;

- Industrial non-hazardous waste;

- Subsidiary activities;

- Mechanization / Machinery;

- Financial operations;

- Legal Affairs and Human Resources, and

- Information technology, Quality and Development

2. INDEPENDENT DEPARTMENTS

- Internal Audit;

- Public Procurement;

- Professional Liability, and

- Eco-Patrol

The Organizational Units – the Sectors are divided into Departments, and the Departments

are divided into Sections.

The organization of The Enterprise is regulated in details under the Act of Internal

Organization.

7. BODIES OF THE ENTERPRISE

Article 20

Bodies of The Enterprise are:

1. Management Board

2. Supervisory Board for Material and Finance Management Control

3. Director General

I. THE MANAGEMENT BOARD

Article 21

The body of management of The Enterprise is the Management Board.

Members of the Management Board are nominated, i.e. suspend / terminated by the

Founder.

The number and constitution of the members of the Management Board are established by

the Founder.

Nominated Representatives as members of the Management Board are well established,

acknowledged, and well-known experts in the area of communal activity, and the principle of

adequate and equal participation of representatives of all communities is considered.

The mandate of the members in the Management Board is 4 (four) years.

Article 22

The member of the Management Board fails entitlement of personal, or in the name of third

person, or on any grounds, performance of interests at an enterprise or any trade company

related to business activity with The Enterprise, and which may influence upon his / her

impartial decision within The Enterprise. Each member of the Management Board, i.e. the

Director General of The Enterprise, is obliged to notify the Founder of The Enterprise if

existence of such interest by one or more members of the Management Board occurs.

The procedure for nomination or during the mandate of the members of the Management

Board is under consideration the principle of disparate / unbundling of functions to be

respected.

Article 23

The President and Vice President of the Management Board are elected from the members

of the Management Board.

The President of the Management Board assembles and manages the sessions of the

Management Board, mindful the work of the Management Board, and performs other

activities determined in accordance to the Articles of the Log Book of the Management

Board.

Article 24

The Management Board of The Enterprise:

1. Enacts the Statute;

2. Adopts the Working Programme and Development of The Enterprise;

3. Establishes the business policy;

4. Adopts the Quarterly Report on the Finance Operations of The Enterprise;

5. Adopts the Annual Financial Statement and the Financial Operational Report

of The Enterprise;

6. Makes decisions on use / allocation of means feasible by the activity of The

Enterprise and coverage / allocation of loses;

7. Enacts the Annual Public Procurement Plan;

8. Enacts the Investment Programme of The Enterprise;

9. Enacts the Financial Plan of The Enterprise;

10. Establishes the List of Price(s) of the services;

11. Makes decisions on the Internal Organization of The Enterprise;

12. Enacts the Act on establishing the value height of the points in calculating

Payroll Salary Lists of the employees in The Enterprise;

13. Enacts the Rulebook on salaries of the employees;

14. Establishes Commissions;

15. Signs Collective Agreements;

16. Makes decisions on business trips abroad made by the Director General of The

Enterprise;

17. Enacts the Articles of the Log Book of the Management Board;

18. Makes decisions and measures for Environment Protection and Development;

19. Disseminates information to the employees;

20. Adopts acts / rules within the scope of work of the Management Board;

21. Makes decisions upon motions and appeals of employees at The Enterprise in

accordance to the Law, and

22. Executes other activities established by the Law, the decisions by the Founder

of the enterprise, this Statute and general acts / rules of The Enterprise

Acts in Article 24, paragraph 1, points 1, 5, 6, 8, 10 and 12 are under consent / approval by

the Founder of the enterprise

Article 25

The Founder of The Enterprise, under proposal of the minister authorized for the operations

corresponding to the activity of The Enterprise, is entitled to share general instructions /

guidelines of interest with the Management Board of The Enterprise in regard to the

performance of certain activities within the scope of work of the Management Board,

regulated in Article 24 of this Statute.

The general instructions / guidelines referred to in paragraph 1 of this Article do not reflect /

relate to the day-to-day management of The Enterprise.

Article 26

The Management Board is fully legal-operational and decides in full capacity whether more

than half of the total numbers of the members attend the session.

The decisions of the Management Board shall be deemed adopted if voted by more than half

of the total number of the members.

The work and method of the decision making process of the Management Board are

regulated in detail with the Articles of the Log Book of the Management Board.

Article 27

The Enterprise is excluded of providing loans and / or guarantees on loans concluded

between third parties and the President or with any other member of the Management

Board, or with the President and / or member of the Supervisory Board for Material and

Finance Operations Control, or with the Director General of The Enterprise.

Article 28

The members of the Management Board in the decision making process shall be unlimitedly

and solidarity accountable / liable for any damage imposed to The Enterprise within such

decision enacting.

The accountability / liability of the members of the Management Board is regulated in

accordance to the provisions of the Law on Public Enterprises / Corporate Law regulating

bodies of management.

Article 29

The Management Board upon Decision establishes a monetary remuneration to the

President, the Vice President and to the members of the Management Board, to the

President and the members of the Supervisory Board for Material and Finance Operations

Control.

All members of the Management Board and of the Supervisory Board are entitled to other

rights related to the performance of their functions (use of working premises, necessary

equipment and resources).

II. SUPERVISORY BOARD FOR MATERIAL and FINANCE OPERATIONS

CONTROL

Article 30

The body in charge to control the Material and Finance Operations of The Enterprise is the

Supervisory Board for Material and Finance Operations Control (hereinafter: The Supervisory

Board).

The Supervisory Board is comprised of 5 (five) members, nominated and / or suspended by

the Founder of the enterprise.

Article 31

The nomination of a member to the Supervisory Board is appoint to a person meeting the

stipulated criteria in regard to university education, knowledge and experience, especially

within the area of finance and accounting.

The mandate of the members of The Supervisory Board is 4 (four) years.

Article 32

The Supervisory Board performs its work in accordance to the competencies / authorizations

established / regulated by the Law and this Statute.

The mandatory for The Supervisory Board is the inspection procedure of the quarterly

reports indicating details of the financial operations, annual statements and the report on

the operations of The Enterprise, and, with completion of the inspection, the Supervisory

Board provides an opinion / recommendation report to the Management Board. The

Management Board excludes adoption of the quarterly reports if the opinion /

recommendation provided by the Supervisory Board are negative in regard to the financial

operations, the annual statements and the report on the operations of The Enterprise.

The Supervisory Board holds its mandatory sessions at least 4 (four) times annually.

Article 33

The members of the Management Board in the decision making process shall be unlimitedly

and solidarity accountable / liable for any damage imposed to The Enterprise within such

decision enacting.

The accountability / liability of the members of the Management Board is regulated in

accordance to the provisions of the Law on Public Enterprises / Corporate Law regulating the

bodies of management.

III. THE DIRECTOR GENERAL

Article 34

The body of management of The Enterprise is the Director General.

The Director General of The Enterprise is elected by the Mayor of the City of Skopje on

advertised Public Open Call.

The mandate of the Director General is 4 (four) years.

Article 35

The Director General of The Enterprise within its rights and competences:

1. Ensures the implementation of the decisions and conclusions /

recommendations provided by the Management Board;

2. Proposes the Work and Development Programme of The Enterprise;

3. Submits the business policy of The Enterprise and ensures its

implementation;

4. Adopts acts and issues orders and instructions for execution of the

operations within the scope of work related to the implementation of

the Work and Development Programme, and, provides proposals for

amending and supplementing thereof;

5. Participates in the establishment of the criteria on usage and allocation

of means and management of assets feasible by the operation of The

Enterprise;

6. Executes harmonization / compliance of the activity of The Enterprise;

7. Advocates and represents The Enterprise, concludes contracts and

undertakes other legal affairs in accordance to the Law;

8. Proposes / submits adoption of acts within the scope of work of the

Management Board;

9. Adopts the Rules for Systematization of job positions of The Enterprise

in accordance to the Law;

10. Submits a Report of the results / outcomes of the operations of The

Enterprise to the Management Board and the Founder of the

enterprise following the periodic and annual statements;

11. Monitors and analyzes the execution of the plans and contractual

obligations, and undertakes measures for their realization;

12. Makes decision on the working hours of the employees and the

holidays / vacation employees are entitled to;

13. Makes decision on establishing employment / labor relation, grading

and suspension / termination of employment / labor relation in

accordance to the Law, and makes decision on other rights and

obligations arising from the employment / labor relation on the behalf

of The Enterprise;

14. Provides measures of labor and environment protection;

15. Adopts decisions, orders, instructions / guidelines and authorizations,

and

16. Executes other activities in accordance to the Law, this Statute and

other acts of The Enterprise.

Article 36

The Director General is obliged to deliver / submit the adopted Quarterly Reports to the

Founder of the enterprise, which contains indicators for the Financial Operations, no later

than 20 days upon expiry of the quarter period.

The Director General is obliged to deliver / submit an Operations Report of The Enterprise to

the Management Board and to the Mayor of the City of Skopje, twice a year, i.e. every six

months.

In the report referred to in paragraph 2 of this Article, the Director General shall, in

particular, provide / submit data on the type and volume of the work executed within the

activity of The Enterprise, and data on the financial operations.

If inconsistencies and / or loses are detected in the Report on Financial Operations of The

Enterprise, the Director General is obliged to eliminate the deficiencies within the next six

months.

The Director General is obliged to publish the Quarterly Report containing indicators for the

Financial Operations, the Annual Statement and the Report on the scope of work of The

Enterprise at the website of The Enterprise.

Article 37

The Director General concludes a contract with the Mayor of the City of Skopje which

regulates the relations with The Enterprise, under which the rights, liabilities and

authorizations are individually regulated in accordance to the Law.

The Director General is responsible / liable for the results / outcomes of his / her work to the

Mayor of the City of Skopje.

Article 38

The Director General shall be unlimitedly responsible / liable for decisions executed to

impose harm / damage to The Enterprise, if such execution of decision occurs.

The responsibility / liability of the Director General is established in accordance to the

provisions of the Law on Public Enterprises / Corporate Law regulating the bodies of

management.

Article 39

The Director General is suspended prior to the expiration of the mandate, in cases:

1. Upon his / her request;

2. If any of the reasons arises due to the regulation of the

employment relation, the employment relation is suspended /

terminated in accordance to the Law;

3. Fails to work and act according to the Law, the Statute and the acts

of The Enterprise, or unjustifiably fails execution of the decisions

made by the Management Board, or acts in contradiction to the

adopted decisions;

4. If harm / damage is imposed to The Enterprise by his / her

negligent and irregular work;

5. Negligence and failure to execute obligations damaging the activity

of public interest of The Enterprise;

6. Failing to deliver / submit reports in accordance to Article 36,

paragraph 1 and 2 of this Statute;

7. Failing to meet the deadline determined in Article 36, paragraph 4

of this Statute and the provisions to eliminate shortcomings /

deficiencies, and / or at the same period the shortcomings /

deficiencies and / or loses on financial operations are repetitive;

8. Failing to publish the Quarterly Report including indicators for

Financial Operations, the Annual Statement and the Work Plan of

The Enterprise on the website of The Enterprise in accordance to

Article 36, paragraph 5 of this Statute;

9. Failing to implement the Work and Development Programme of

The Enterprise.

Article 40

In case of suspension / termination of the Director General’s mandate, due to any grounds,

until further notice of the new Director General’s nomination, the Mayor appoints an Acting

Director General of The Enterprise.

Article 41

The Director General is entitled to appoint / authorize an employee of The Enterprise to

interchange and perform leadership of the actual activity of The Enterprise in case of

Director General’s absence.

The employee interchanges in absence or inability of the Director General of The Enterprise

to perform function under the rights and obligations authorized by the Director General in

accordance to the Law and this Statute.

Article 42

The provisions from Article 22 of this Statute apply to the Director General and to the

members of the Supervisory Board of The Enterprise.

8. MANAGERS

Article 43

Managers / employees manage and organize the work of the Organizational Units they are in

charge of.

The Managers are responsible / liable for the results and lawfulness of the work within the

Organizational Unit they are in charge of.

The terms for allocation and obligation liability of the managers, the description of the work

responsibility are established with the acts of the internal organization and systematization

of job positions within The Enterprise.

9. EMPLOYEES AT THE ENTERPRISE

Article 44

The rights of the employees are accomplished under the Law, the Collective Agreements and

under the General Acts of The Enterprise.

Article 45

The Employment Policy of The Enterprise is applied under the principle of adequate and

equal representation of the citizens of all communities without disturbing the competence

criteria and professionalism.

10. SUBSIDIARY UNITS AND BODIES

Article 46

In order to function and improve operations of The Enterprise, and the employees at The

Enterprise to achieve certain rights, obligations and responsibilities, if necessity arises,

permanent and temporary / occasional commissions and working bodies shall be established

at The Enterprise.

The commissions and the working bodies are established by the Management Board and the

Director General of The Enterprise, each in the domain of their competencies and

authorizations.

The competency, the manner / principle of work and other issues related to the commissions

and the working bodies shall be regulated by the General Act of The Enterprise.

11. GENERAL ACTS OF THE ENTERPRISE

Article 47

General Acts of The Enterprise are:

1. The Statute of The Enterprise;

2. The Book of Rules / Regulations on Internal Organization of The Enterprise;

3. The Book of Rules / Regulations on Systematization of Job positions at The

Enterprise;

4. The Collective Agreement to regulate the rights, obligations and responsibilities /

liabilities arising from the employment / labour relation of the employees at The

Enterprise;

5. Other acts in accordance to the Law.

Article 48

This Statute is the foundation act of The Enterprise.

Other acts must be in accordance to this Statute.

Provisions and other acts contradicting / opposing this Statute fail appliance.

Article 49

The procedure for enacting, amending and supplementing the general acts is arises under

the initiative of the Director General, the Management Board, the Supervisory Board, and

the majority of the Trade Union.

The Director General, i.e. the Management Board evaluates the justification of the initiated

initiative referred to in paragraph 1 of this Article.

Article 50

Upon initiative acceptance, the services, within 30 days, prepare the working text of the

general act.

The general acts must be in compliance with the legal regulations and with this Statute.

Article 51

The general acts of The Enterprise shall be published on the Notice Board and shall enter into

force on the day of publication; if consent / approval of the Founder of the enterprise is

required, the general act is published upon receipt of such consent / approval.

12. OPERATION OF THE ENTERPRISE

I. Property and Assets of The Enterprise

Article 52

The property of The Enterprise includes buildings, assets, monetary means and legal rights.

The Enterprise operates with as many bank accounts as it is necessary for solid operations /

maintenance.

Article 53

The resources for full operation of The Enterprise are provided by:

1. The income / revenue of The Enterprise;

2. The Budget of the City of Skopje;

3. Donations and Subsidies;

4. Loan funds, and

5. Other resources in accordance to the Law.

II. Work and Development Programme of The Enterprise

Article 54

For a positive operation and development of The Enterprise, i.e. for ensuring permanent and

continuous performance of the activity, quality of services and improvement of the

operations, the Management Board enacts the Work and Development Programme of The

Enterprise proposed by the Director General.

The programming of the activity of The Enterprise is envisaged for one or more years.

The Founder of the enterprise provides its consent / approval on the Work and Development

Programme.

The Director General is liable in full capacity for the implementation of the Work and

Development Programme of The Enterprise.

13. TRANSPARENCY

Article 55

The Enterprise realizes and develops its system of information release to the users of the

services, as an important / significant prerequisite for its function within the City of Skopje.

Acts of importance / significance to the users of the services of The Enterprise are published

in the “Official Gazette” of the City of Skopje.

The Enterprise is obliged, on regular bases, to inform the public through the resources for

public information dissemination for their operations, work and development programmes.

Article 56

The Enterprise is obliged on regular bases, timely, completely and truthfully to inform its

employees for all issues relevant for the operations and development of The Enterprise, and,

in respect, for the effectuation of the employees’ rights.

The Enterprise disseminates information to its employees through the Notice Board, the

Newsletter, the Newspaper of the Enterprise, the website of The Enterprise and other forms

of information.

14. TRANSITIONAL AND FINAL PROVISIONS

Article 57

The General Acts of The Enterprise established under this Statute shall be harmonized and

enacted within 3 (three) months post entering into force of the Statute.

Until completion of the harmonization / compliance, i.e. enacting of general acts as

stipulated in the previous paragraph, the general acts that are in current force remain

applicable, if they fail confliction with this Statute.

Article 58

With the date entry into force of this Statute, suspended / terminated is the Statute of The

Enterprise under the number 02 – 14671 / 2 – 1, date December 7, 2006; the Statutory

Decision on amending the Statute of The Public Enterprise Communal Hygiene – Skopje

under number 02 – 1139 / 2, date January 30, 2008; the Statutory Decision on amending the

Statute of The Public Enterprise Communal Hygiene – Skopje under number 02 – 1308 / 2,

date October 15, 2008; the Statutory Decision on amending the Statute of the Public

Enterprise Communal Hygiene – Skopje under number 02 – 1680, date March 4, 2010;

Decision on amending the Statute of the Public Enterprise Communal Hygiene – Skopje

under number 02 – 4012, date April 11, 2011; the Statutory Decision on amending the

Statute of the Public Enterprise Communal Hygiene – Skopje under number 02 – 2220, date

April 17, 2014; the Statutory Decision on amending the Statute of the Public Enterprise

Communal Hygiene – Skopje under number 02 – 2580, date July 3, 2017, and the Statutory

Decision on amending of the Statute of the Public Enterprise Communal Hygiene – Skopje

under number 02 – 1740, date April 9, 2019.

Article 59

This Statute enters into force on the day of publishing on the Notice Board of The Enterprise,

upon prior consent / approval by the Council of the City of Skopje.

PE Communal Hygiene – Skopje

Management Board

President,

____________________________

Maja Shajnovska Andova