The Federal National Council refused to pass the end-of-year audit report for 2010 by the State Audit Institute, highlighting numerous instances of spending and accounting rules being flouted across government departments.
Money was found being moved from one department to another without the required approval.
Revenue that should have gone into the federal budget stayed in local government accounts.
The council decided to make a statement by refusing to pass the report.
The Minister of State for FNC Affairs, Dr Anwar Gargash, argued that it was not in the council’s power to do so.
But the council stood firm, only passing the budget after being promised that the next report, due early in 2013, will be free of such irregularities.