Eddard is incarcerated in the black cells under the Red Keep. He is visited by Varys who is disguised as a gaoler. Varys is bemused by Eddard telling Cersei that he knew about the parentage of her children and adds that his mercy is what killed Robert. He also informs Ned that Catelyn no longer has Tyrion in custody. Eddard asks if he will be killed and Varys replies, "Not today."  Varys returns to urge Eddard to confess to treason in exchange for exile in the Night's Watch . Eddard refuses until Varys elucidates that the Lannisters still have Sansa as a hostage - Arya has escaped. Varys adds that the Lannisters need him alive so they can bargain with his son Robb, who is leading an army to confront them in the Riverlands . 
The crappiness of the movie was matched by Abramoff's methods. Red Scorpion was made in Namibia, which was occupied by South Africa at the time. South African military equipment was even used on set with some of their soldiers serving as extras. Remember that this was during the height of apartheid; working with South Africa ranged from being illegal to just not very cool . Anti-apartheid protesters soon popped up on set, and Warner Bros. pulled out as distributors. Think about that for a second. Do you have any idea how hard it was in the 80's to get Americans mad at you for making an anti-communist movie?