So I could live with his demotion.
There is the problem right there.
With respect I think you are absolutely right on the technicalities and the letter of the rules and standards.
But you have avoided the real politik of the situation, and that is, as it always is, strength in numbers. And the reality is that the cosy, inside nature of awarding this position is not the juicy stroke-pulling of multi-million euro contracts, home extensions and extravagant lifestyles of yesteryear. It was tokenistic.
Albeit in principle you are correct, Coveney has built a lot of political capital for himself and this episode is going to damage it but not derail it all.
And what punishment should he have to endure? That is subjective. Some want sackcloth and ashes, others just his arms and legs. The rest, a simple reprimand will do.
What is the appropriate penalty? The strength in numbers determines that.
That said, it is a gift for SF. And as the political opposition they are totally right to try exploit it to the max. Albeit, personally speaking I don't envisage much capital to be gained out of it.