Access to admin rights

Hi! We have a Co policy that only IT staff have access to the Administrator password per pc. Recently, a line manager requested this access. I quoted co policy and told him that there was no way he could get this.
He went to the Financial Manager whom I report to and because they are personal friends, the Financial Manager has approved this. I am now forced to give in to this. Because we are a semi-Govt organisation, he will probably get away with this breach of Co policy.
We often have this – where managers who are personal friends with each other, get away with this kind of thing. It is becoming so that it is best to look the other way than have 5/6 managers against you! Any advice.
Disgruntled!
IT Manager