In most work situations if there is an investigation, then people are suspended pending the outcome.
I wouldn't want to see people losing their licence just because they've made a mistake or because someone has made an allegation, however, the investigation process needs to be tightened up. This chap shouldn't have been flying and their was evidence to support action being taken against him.
The question needs to be why this was. We don't need more regulation, we just need the current rules enforced better.