The study attempts to establish a link between internal control practices and financial performance inBayelsa State Broadcasting Corporation of Nigeria using both primary and secondary data obtained from the organization through questionnaire and monthly reports of the entity. The objectives, research questions and hypothesis were established in this line to link internal audit and safeguarding of assets with gross surplus margin and net surplus margin. The empirical analysis shows that there is an insignificant relationship between internal control and the performance of parastatals in Nigeria; internal auditing has a positive and insignificant relationship with gross surplus margin; safeguarding of assets has a negative and insignificant relationship with gross surplus margin of government owned companies. It is evident from the findings of the study that internal control plays a minute role in enhancing the performance of government owned companies in Nigeria. It can therefore be deducted that government owned companies are not managed efficiently; downplay authorization, circumvent laid down processes and by-pass procedures. the following recommendations are made: Only competent technocrats should be engaged to head audit units of government owned companies. Experience should be accorded in the appointment of leaders of parastatals.