He was trying to get his instrument rating in 10 days, but he doesn't even meet the requirements of Private PTS.
Are you saying that this individual didn't perform for you to the standards prescribed by the Practical Test Standards? Or are you telling us that this individual didn't meet the technical requirements to qualify for a private pilot certicate, as spelled out by 14 CFR 61.103, 61.105, 61.107, and 61.109?
As you know, the PTS prescribes not the standards for every day pilot performance, but only the standards which must be achieved on the day the practical test is administered. Why can say how the student performed on that day, except the examiner? The examiner has certified that the student did indeed perform to those standards...thus endeth the trail of evidence. Good luck with that.
If you can show that the student is so grossly incompetent that such a performance is patently impossible, you may have a case. In the meantime, you can report your suspicion to the FSDO, and a surveillance may be opened on the examiner, and the instructor who recommended the student or his practical test standards.
How can I prevent this guy getting a free instrument rating...?
You can't.
What you can do is prevent yourself from recommending the student. If the student isn't qualified to the practical test, you have a moral and a legal duty to not recommend him for the practical test. If you believe the student to be dangerous, you have a duty to discontinue instructiona and notify the FSDO immediately.
You can't prevent the student from becomng certified, however nor can you control the value or difficulty of the instrument rating if at any time it should be awarded. You can only control your own actions and report what you know to those who can control the situation.
I tried to talk to the examiner but he wouldn't return my calls at all.
Confronting the examiner is not recommended. It's a bad idea.
What do you hope to accomplish? Do you hope that the examiner will reverse his decision? He can't, nor is he expected to do so when such a reversal would be self-incrimination. Do you hope the examiner will see the light, acknowledge your accusation that he's subverting the regulation and awarding "free" ratings? Why would he possibly do that? You have nothing to gain there. Do you hope to make yourself feel better by personally confronting him? You might, but you won't feel nearly so good when it only complicates matters. Do you think the examiner is doing this innocently and just hasn't seen things clearly yet? Think again. You have nothing to gain by confronting the examiner. Nothing.
Now this guy is going to go to the original examiner because he doesn't want to do his instrument check ride with someone else.
Who recommended him to take the practical test??
I mean this guy is so bad that he cannot tell me what a radial is and he constantly gets lost when his MFD is turned off.
Your course with respect to instructing and recommending this individual is clear. You have the authorization, privilege, and duty to evalute the student, determine if he is instructable, provide that instruction if your judgement dictates so, or refuse to continue providing instruction and refuse to endore the student for privileges or a practical test until such time as the student meets the appropriate standards as YOU apply them to him. You already know this.
What is the real question here, then?