Sky has no permission to arrest Manny Pardo, however since Manny Pardo is an amazing thick skinned detective he can arrest any suspects based on suspicion about the mysterious enigmatic killer called the Miami Mutilator.
I'm afraid you misunderstood the situation, Manny Pardo was simply just doing his job as a detective trying to uncover the case of the Miami Mutilator, he had to take out Sky and White because they came at him, he had to take them out. It was either Manny or White and Blue.