{"url_path":"/sec/vcig/10-k/2026/item-15","section_key":"item-15","section_title":"Item 15 CONTROLS AND PROCEDURES**","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1930510/0001213900-26-078044-index.html","accession_number":"0001213900-26-078044","cik":"0001930510","ticker":"VCIG","issuer_name":"VCI Global Ltd","edgar_url":"https://www.sec.gov/Archives/edgar/data/1930510/0001213900-26-078044-index.html","primary_entity_key":"0001930510","primary_entity_name":"VCI Global Ltd"},"word_count":806,"has_tables":true,"body_markdown":"**Item\n15. CONTROLS AND PROCEDURES**\n\n \n\n**Disclosure\nControls and Procedures**\n\n \n\nOur\nmanagement, with the participation of our Chief Executive Officer, Victor Hoo and our Chief Financial Officer, Ang Zhi Feng, has performed\nan evaluation of the effectiveness of our disclosure controls and procedures within the meaning of Rules 13a-15(e) and 15d-15(e) of the\nExchange Act as of the end of the period covered by this annual report. Based on such evaluation, our management has concluded that,\nas of the end of the period covered by this annual report, our disclosure controls and procedures were not effective to provide reasonable\nassurance that material information required to be disclosed by us in the reports that we file with, or submit to, the SEC under the\nExchange Act is recorded, processed, summarized and reported within the time periods specified in by the SEC’s rules and regulations.\nThis determination was primarily due to the identification of the material weaknesses identified in our internal control over financial\nreporting discussed below.\n\n \n\n75\n\n \n\n \n\n**Management’s\nAnnual Report on Internal Control over Financial Reporting**\n\n \n\nOur\nmanagement is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined\nin Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the participation of our management, including\nour CEO and CFO, we conducted an evaluation of the effectiveness of our internal control over financial reporting. Our management assessed\nthe effectiveness of our internal control over financial reporting as of December 31, 2025. In making this assessment, it used the criteria\nestablished in the updated framework in the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations\nof the Treadway Commission in 1992 and updated in May 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission,\nor COSO. Based on this evaluation, management concluded that the Company’s internal control over financial reporting is not effective\nas of December 31, 2025, due to material weaknesses in our internal control over financial reporting, as further described below.\n\n \n\nThe\nspecific material weaknesses we identified in our internal control over financial reporting consist of the following:\n\n \n\n \n-\nThe\nCompany has inadequate documentation on internal control over financial reporting;\n\n \n\n \n-\nThe\nCompany does not maintain documentation on operating effectiveness tests of internal control over financial reporting;\n\n \n\n \n-\nThe\nlack of sufficient qualified accounting personnel with appropriate understanding of SEC reporting requirements commensurate with\nthe Company’s financial reporting requirements, which resulted in a number of internal control deficiencies. Also, as a small-scale\ncompany, the Company does not have sufficient internal control personnel to set up adequate review functions at each reporting level.\n\n \n\nIn\norder to cure the foregoing material weaknesses, we have taken or are taking the following remediation measures:\n\n \n\n \n1.\nWe\nare seeking additional accounting and internal control staff with relevant SEC reporting and internal control experience, skills\nand knowledge in improving standards and procedures according to the requirements of the Sarbanes-Oxley Act;\n\n \n\n \n2.\nWe\nplan to provide further training to the Company’s finance staff to enhance their understanding of the Company’s internal\ncontrol policies and procedures, including participating in training programs to and internal control.\n\n \n\nThe\nCompany recognizes that the material weaknesses in its internal control over financial reporting will not be considered remediated until\nthe remediated measures operate for a sufficient period of time and can be tested and concluded by management to be designed and operating\neffectively. Because the Company’s remediation efforts are ongoing, it cannot provide any assurance that these remediation efforts\nwill be successful or that its internal control over financial reporting will be effective as a result of these efforts.\n\n \n\nThe\nCompany continues to evaluate and work to improve its internal control over financial reporting related to the identified material weaknesses,\nand management may determine to take additional measures to address control deficiencies or determine to modify the remediation plan\ndescribed above. In addition, the Company will report the progress and status of the above remediation efforts to the Audit Committee\non a periodic basis.\n\n \n\nAll\ninternal control systems, no matter how well designed, have inherent limitations. Even systems determined to be effective can only provide\nreasonable assurance regarding financial statement preparation and presentation and may not prevent or detect misstatements. In addition,\nany evaluation of effectiveness in future periods is subject to the risk that controls may become inadequate because of changes in future\nconditions.\n\n \n\nDespite that, management believes that the consolidated financial statements\nincluded in this annual report present fairly the consolidated financial position, results of operations and cash flows of the Company\nfor the fiscal year covered.\n\n \n\n76\n\n \n\n \n\n**Changes\nin Internal Control over Financial Reporting**\n\n \n\nThere\nwere no changes in our internal controls over financial reporting that occurred during the period covered by this annual report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting."}