The Canadian government has reached a multimillion dollar settlement with Chinese prisoner Michael Spavor to compensate him for the three years he was incarcerated in jails under tough conditions. The Globe and Mail reported Wednesday the settlement came after Spavor threatened to sue the government and his fellow prisoner Michael Kovrig, alleging he was arrested by China because of information he shared with him. Spavor alleged this information was passed onto the government and its allies in the course of Kovrig’s duties as a diplomat with Global Affairs Canada’s (GAC) Global Security Reporting Program (GSRP).Spavor’s lawyer John K. Phillips confirmed a settlement had been concluded, but he declined to offer details. “The only thing any party is able to say is that the matter has been resolved,” said Phillips. A source said Spavor’s settlement was worth about $6 million. Confidential negotiations took place between Phillips and Justice Canada and GAC Executive Director and senior counsel Patrick Hill. It is unknown whether or not Kovrig received a compensation package. Kovrig acknowledged in December he was in talks with the Canadian government about compensation. He said he would donate to charity any money from a settlement that went beyond income and other losses he incurred for the almost three years spent in a Chinese prison.In his dealings with Spavor, he said they were proper and followed the standard of laws, rules and regulations governing diplomats. They were arrested and charged with espionage in 2018 after Canada detained Huawei senior executive Meng Wanzhou on an American extradition warrant. They were freed from Chinese jails in 2021 after the American government worked out a legal deal with Meng.At the time, the Canadian government denied they were involved in espionage, with Prime Minister Justin Trudeau, cabinet ministers and former Canadian ambassador to China Dominic Barton saying China had incarcerated them on excessive charges in retaliation to Meng’s arrest. Spavor is one of a few Canadians who has travelled in North Korea and had a personal relationship with Supreme Leader Kim Jong Un. He has been photographed sharing cocktails with Kim on one of his private yachts after they had been jet-skiing in the bay next to Wonsan, North Korea, and has met North Korean cabinet ministers. Spavor was charged by Chinese prosecutors with spying for a foreign entity and illegally procuring state secrets. Kovrig was charged with illegally receiving state secrets and intelligence in collaboration with Spavor. Another source said China subjected Spavor to lengthy interrogation sessions. He added he was drugged, forced to sit in a chair for long hours and subjected to threats of execution. Phillips’ bid for a settlement was likely strengthened by the release of a critical examination of the GSRP by the National Security and Intelligence Review Agency (NSIRA). The report was completed in 2020, but it was held back from release because of high sensitivities about a public examination of the GSRP while they were held in Chinese prisons.The NSIRA found an absence of risk assessments, security protocols and legal guidance for the increased scrutiny GSRP officers might attract because of the nature of their reporting priorities. While Kovrig was not named, the NSIRA warned about the overlap between GSRP officers and Canadian Security Intelligence Service agents at missions abroad. It determined these officers do not appreciate the risks and dangers associated with overseas contacts and sources.Moreover, it appeared to allude to Kovrig, who had taken a leave of absence from GAC in 2017 to work for a global conflict analysis group in Hong Kong. “It was not clear if all officers understood that once they are no longer afforded diplomatic immunity, a receiving state may seek retaliatory measures against them,” it said. The Canadian government said in December it was willing to compensate Spavor and Kovrig millions of dollars for the time they spent imprisoned in China. READ MORE: Ottawa preparing to compensate two Michaels for time served in Chinese prisonWhile it wanted to compensate them with $3 million each, Phillips asked for $10.5 million. He launched a lawsuit alleging gross negligence on how it handled intelligence operations, which they were affiliated with during their time in China.
