UPDATE: Japan's Prime Minister confirms radiation is spewing from damaged reactors, warning residents to stay inside or risk radiation sickness.

Via Truthout, Greg Palast informs us that TEPCO, the Japanese power company, has a long history of safety violations and coverups -- and they're coming to the Gulf of Mexico to build a nuclear power plant! Can this nightmare get any worse?

I need to speak to you, not as a reporter, but in my former capacity as lead investigator in several government nuclear plant fraud and racketeering investigations.

I don't know the law in Japan, so I can't tell you if Tokyo Electric Power Co (TEPCO) can plead insanity to the homicides about to happen.

But what will Obama plead? The administration, just months ago, asked Congress to provide a $4 billion loan guarantee for two new nuclear reactors to be built and operated on the Gulf Coast of Texas - by TEPCO and local partners. As if the Gulf hasn't suffered enough. Here are the facts about TEPCO and the industry you haven't heard on CNN:

The failure of emergency systems at Japan's nuclear plants comes as no surprise to those of us who have worked in the field.

Nuclear plants the world over must be certified for what is called "SQ" or "Seismic Qualification." That is, the owners swear that all components are designed for the maximum conceivable shaking event, be it from an earthquake or an exploding Christmas card from al-Qaeda.

The most inexpensive way to meet your SQ is to lie. The industry does it all the time. The government team I worked with caught them once, in 1988, at the Shoreham plant in New York. Correcting the SQ problem at Shoreham would have cost a cool billion, so engineers were told to change the tests from "failed" to "passed."

The company that put in the false safety report? Stone & Webster, now the nuclear unit of Shaw Construction, which will work with TEPCO to build the Texas plant. Lord help us.

There's more.

Last night, I heard CNN reporters repeat the official line that the tsunami disabled the pumps needed to cool the reactors, implying that water unexpectedly got into the diesel generators that run the pumps.

These safety backup systems are the "EDGs" in nuke-speak: Emergency Diesel Generators. That they didn't work in an emergency is like a fire department telling us they couldn't save a building because "it was on fire."

Sounds too much like anti-nuke propaganda? The Guardian doesn't have any reassuring news, either:

Nuclear experts have thrown doubt on the accuracy of official information issued about the Fukushima nuclear accident, saying that it followed a pattern of secrecy and cover-ups employed in other nuclear accidents. "It's impossible to get any radiation readings," said John Large, an independent nuclear engineer who has worked for the UK government and been commissioned to report on the accident for Greenpeace International.

"The actions of the Japanese government are completely contrary to their words. They have evacuated 180,000 people but say there is no radiation. They are certain to have readings but we are being told nothing." He said a radiation release was suspected "but at the moment it is impossible to know. It was the same at Chernobyl, where they said there was a bit of a problem and only later did the full extent emerge."

According to some reports, 17 helicopter crewmen helping in rescue efforts were contaminated with low-level radiation, but Japanese officials declined to comment.

The country's government has previously been accused of covering up nuclear accidents and hampering the development of alternative energy.

In a newly released diplomatic cable obtained by WikiLeaks, politician Taro Kono, a high-profile member of Japan's lower house, tells US diplomats that the Ministry of Economy, Trade and Industry – the Japanese government department responsible for nuclear energy – has been "covering up nuclear accidents and obscuring the true costs and problems associated with the nuclear industry".

[...] "What we are seeing follows a clear pattern of secrecy and denial," said Paul Dorfman, co-secretary to the Committee Examining Radiation Risks from Internal Emitters, a UK government advisory committee disbanded in 2004.

"The Japanese government has always tended to underplay accidents. At the moment the Japanese claims of safety are not to be believed by anyone. The health effects of what has happened so far are imponderable. The reality is we just do not know. There is profound uncertainty about the impact of the accident."