I assume that this situation wasn't kept in-house because it could not be kept in house; otherwise, pretty poor drills to let these two guys hang and everyone else to suffer afterwards. They presumably started the evening with some other officers - if it was getting out of hand the Sqn 2IC should have had a word in their shells like and if it was getting really out of hand they should have been bundled into a cab (with an escort) and told to see the OC Sqn in the morning when they had sobered up. Short of rape or murder, if a situation can be dealt with within the chain of command, then it should be. The bottom line is this - were they good guys who ****** up or were they social hand grenades? If the former, then the quality of mercy is not strained, if the latter then I guess it's AGAI 67 time.
The Army is not blameless in this regard, far from it. A Inf Bn CO (who I knew many years ago as a Lt MG Pl Comd) and his Bn 2IC got similarly trashed on ex in Eastern Europe a couple of years ago, much to the embarrassment of the DA. Luckily, it didn't make the Sun, although there were plenty of witnesses i.e. an entire Inf Bn. Both officers were sacked.