A few thoughts.
Chap is/was a sqn ldr. So he's either had a good career to-date or managed to blag it for some time; I would guess the former.
Having kicked-around SH for some time (albeit a decade or so ago), the force is very hard-working, very hard-playing. I can't think of many who didn't over-step the 'mark' at least once (I'm not talking class A drugs here).
Cocaine - when CGB joined-up such activity was a non-starter. I think it is right that this should still be the the case.
If one was to believe the newspaper, I'm astounded at the naivety of the individual in openly flaunting his cocaine activity in the Mess. Some pages back it was hinted that this may be the manifestation of an underlying issue but no sane senior officer would openly pass the powder without knowing the consequences. His actions were almost the equivalent of the Mess Webley.
His compatriots did exactly the right thing. This was not a "CO's office, hat no sherry" event.
I feel sorry for the man, he has clearly gone off the rails as far as the Service is concerned and the reasons for this need to be ascertained and addressed.