According to this article, he has been expelled from the Labour Party.
http://www.guardian.c...nis-macshane-expenses
He has been punished by virtue of losing his job. He has been investigated by the police and the CPS. It is down to them whether he should have been prosecuted or not. One can only conclude that the CPS/Plice felt there was insufficient evidence to be confident of obtaining a conviction.
It is the committee, not the Labour Party, who recommended a 12 month suspension - they felt that was a sufficient penalty. You might not agree. Neither do I, as it happens, but from a practical point of view it looks like hte constituency will have a by-election soon.
The amount is question, especially when viewed against other expenses fraud, is actually fairly trivial - £12,000 or so, which he has had to repay. More serious was the evidence of a systematic intent to defraud in order to avoid public scrutiny of his european travels.
I agree that, given the scale of the original claims of expenses fiddling that he should have been punished more vigorously then. In fact, based upon what I have read, I am unsure as to why he was not prosecuted at that point.