Canada’s federal government has reached a million-dollar compensation settlement with Michael Spavor, a businessman who was held by China for nearly three years amid a broader diplomatic feud between the two countries.
Spavor and Michael Kovrig, who became known as “the two Michaels”, were detained by Beijing in December 2018 in apparent retaliation for the arrest in Vancouver of the senior Huawei executive Meng Wanzhou on a US warrant. All three were later released.
In November Spavor was reported to have threatened to sue both Canada and Kovrig, alleging that he had “unwittingly” provided intelligence on North Korea to Kovrig, who then shared that information with Canada and Five Eyes allies through Canada’s global security reporting program (GSRP).
Spavor’s settlement is reported to be worth C$7m ($5.2m), including legal fees and expenses. In a statement, Spavor’s lawyer said “the matter between Mr Spavor and the Government of Canada has been resolved” but did not specify the compensation amount.
Charlotte MacLeod, a spokesperson for Global Affairs Canada, said in a statement: “While the 1019 days in which they were arbitrarily detained by China will never be erased, the Government of Canada is committed to supporting them in their efforts to turn to a new chapter in their lives based on their individual circumstances and impacts, and in acknowledgement of their ordeal and the suffering caused by their arbitrary detention by China.”
The two Michaels were arrested in 2018 shortly after the Huawei executive Meng was detained in Canada in connection with possible violations of trade sanctions on Iran.
Chinese officials said Spavor, who often visited North Korea and had spent time with the country’s dictator, Kim Jong-un, was supplying intelligence to Kovrig , who took leave from working as a diplomat at Canada’s embassy in Beijing from 2012 to 2014 to work at the International Crisis Group. At the time, the arrests of “the two Michaels” drew accusations of “hostage diplomacy” by Canada and its allies.
In August 2021, Spavor was sentenced to 11 years in prison on charges of spying. Kovrig’s verdict, after a secret trial in March, was never announced. The two men were freed by China in September of that year, after Meng Wanzhou reached a deal with US prosecutors and was released, capping a standoff that lasted more than 1,000 days.
The settlement follows a damning watchdog report about the controversial intelligence-sharing program run by Canada’s foreign affairs ministry, which found it puts its officers at risk and breaches global diplomatic conventions.
Canada’s national security and intelligence review agency uncovered troubling aspects of the GSRP , finding that officers lacked “adequate training” and the program did not have sufficient risk assessment and security protocols within to ensure officers – and their sources – were protected.
