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Canada's 'worst boss' defies nuclear regulator, threatens to sue
A licensed nuclear facility in Kanata is ignoring orders from the federal regulator, with the owner claiming in all-caps rants that he will sue the Canadian Nuclear Safety Commission (CNSC).
A deadline passed this week for Best Theratronics Ltd. (BTL) to provide the CNSC with a written update on its progress toward restoring a lapsed financial guarantee.
After receiving no response from the company, the CNSC told CBC in an email that it will now "determine the next steps."
BTL owner Krishnan Suthanthiran did not respond by publication time when asked about the deadline elapsing, but has previously accused CNSC of wrongdoing.
"We are not in violation of CNSC RULES , it is CNSC THAT IS IN VIOLATION OF THEIR OWN RULES," Suthanthiran wrote to CBC in an email last month, claiming he was filing a lawsuit against the CNSC.
"THIS AND MY BUSINESS EXPERIENCE IN CANADA WILL BE A GLOBAL MOVIE - DOCU DRAMA - under the generic title , " NO GOOD DEED GOES UNPUNISHED ", the septuagenarian continued, using idiosyncratic capitalization and punctuation.
With Suthanthiran's conflict with the CNSC stretching back to last November, critics say the case highlights issues with the regulator's cosy relationship with the industry it oversees and raises questions about whether taxpayer money could be at stake if the dispute is not revolved.
'Canada's worst boss'
BTL is a manufacturer of cancer treatment machines with a Class 1B nuclear substance processing facility operating licence. Formerly part of Crown corporation Atomic Energy Canada Ltd., it was privatized in the 1990s and then sold to the Indian-born Suthanthiran in 2007.
The licence permits it to handle nuclear isotopes involved in the production of cobalt-60 external beam radiation therapy units and cesium-137 self-contained blood irradiators.
As part of its licence, BTL is required to maintain a $1.8-million financial guarantee, to cover any costs associated with cleanup or decommissioning, should the company default on its obligations.
Last year, as BTL was involved in a protracted labour dispute in which striking workers labelled Suthanthiran "Canada's worst boss," the CNSC was made aware this guarantee had lapsed. At the same time, the regulator was growing concerned about security at the then empty facility.
In November, the CNSC issued two orders against BTL, one relating to restoring the financial guarantee and another related to security at the facility while the workers were on strike.
In February, the CNSC amended the financial guarantee order, giving BTL until June 9 to provide a written update.
"Providing extensions and long timelines for compliance is a hallmark of a regulator that is being too deferential and accommodating of industry," said Theresa McClenaghan, executive director of the Canadian Environmental Law Association.
This accommodative approach toward a recalcitrant licensee was also seen in communications CNSC sent to BTL advising the company that it may be in breach of the financial guarantee order.
"Some of the activities that Best Theratronics Ltd. has indicated have occurred ... may not be allowed under section 1 of the amended order," it wrote in a May 15 email seen by CBC. "As such, we request that you cease these activities."
In a response seen by CBC, Suthanthiran replied to the regulator: "I HAVE BEEN BUSY IN RAISING LOAN FUNDS TO KEEP BTL OPERATIONAL , ( but not other companies ) . BUT WHY ARE YOU CHARGING LINCE FEES QUARTERLY WHEN YOU ARE DENYING THE CANCER PATIENTS GLOBALLY FROM GETTING THEIR TREATMENT .
"CNSC TREAMENT OF BTL IS NOT A REGULATORY PRUDENCE BUT CRIMINAL .
"BEST WISHES , HAVE A GRSAT FRIDAY ."
'The captive regulator problem'
Part of CNSC's difficulty in dealing Suthanthiran is that its regulatory framework does not envisage dealing with bad faith actors, according to McClenaghan.
Instead, its light-touch regulatory philosophy relies on licensed operators to uphold standards. "Licensees are directly responsible for managing regulated activities in a manner that protects health, safety, security and the environment," the CNSC writes on its website.
"I can't think of a time in Canada where you just had somebody completely not complying" with orders, said McClenaghan. "In my view, the CNSC is not sufficiently independent."
Among the next steps the CNSC may consider, it has the power to revoke Suthanthiran's licence.
"The CNSC uses a graduated approach to enforcement to encourage and compel compliance and deter future non-compliances," a CNSC spokesperson told CBC in an email. "Enforcement actions can range from simply informing the licensee, to issuing an order or an administrative monetary penalty, to revocation of a licence and prosecution in the most extreme of cases."
Green Party Leader Elizabeth May believes Suthanthiran's licence should be revoked.
"Why is he still operating in Canada when he's out of compliance with many orders that the company has been issued?" she asked.
Under investigation in Belgium
In 2012, another company owned by Suthanthiran, Best Medical Belgium, was placed into administration after Belgian authorities accused Suthanthiran of illegally draining funds from the company and walking away.
The Walloon regional government said the total cost of that cleanup operation eventually reached €128 million, now worth about $200 million Cdn. A criminal investigation into Suthanthiran in Belgium is ongoing, the Belgian prosecutor has told CBC.
Given Suthanthiran's history, it is problematic that the CNSC has not moved more swiftly, according to May.
"It's basically the captive regulator problem," she said, suggesting the CNSC may be too close to the industry it oversees.
BTL is in the riding of Liberal MP Jenna Sudds, who said she takes matters of regulatory compliance seriously.
"Ignoring directives from our national regulatory body raises serious concerns about the commitment to safety standards that protect both employees and our community," Sudds wrote in an emailed statement, adding that she will "monitor this situation closely."
