I recall a former RAAF CFI (or similar executive position) entering civvy-street to run a small country aero club. He tried to run it like an air force school and the place ended up collapsing but not before everyone from engineers to the refueller had been alienated. Just an aside.
Maybe the applicant should've requested at own expense a test for RPL. If he could adapt to the "rigours" of teaching civilians to fly then give him the qualification. I don't know how it works exactly but recognition of prior learning is "a thing."