ICAC chiefs yesterday took the unusual step of expressing concern over the magistrate's decision.
Head of operations Tony Kwok Man-wai said he had discussed the decision with the Department of Justice.
A source said the ICAC was only responsible for investigating corruption and denied threats were made.
'Who should be prosecuted, what charges should be laid and the venue of the trial are all decisions taken by the Department of Justice. At the very most we can only act as agents on their behalf.
'We never discuss plea bargaining with the accused,' the source said.