[2] Following allegations of irregularities in his campaign spending, Penashue announced on March 14, 2013 that he would resign and seek to regain his seat in a by-election.
He was also elected to the position of Deputy Grand Chief of the Innu Nation in Sheshatshiu in 2007 and stepped down on March 9, 2010.
[10] Penashue was the Minister of Intergovernmental Affairs and President of the Queen's Privy Council for Canada from May 18, 2011 until his resignation on March 14, 2013.
After the 2011, election the Peneshue campaign had $4000 but still owed $15,000 from a $25,000 zero interest loan to the Innu Development Limited Partnership, a firm managed by his brother-in-law, Paul Rich.
Penashue's official agent in the 2011 campaign, Reg Bowers, has been charged with three counts of accepting illegal corporate contributions under the Canada Elections Act.
[14] On September 3, 2015, Penashue was nominated as Conservative candidate in his former riding in the 2015 Canadian federal election, again running against Yvonne Jones.
Penashue later served as one of two Innu Nation representatives on the Independent Expert Advisory Committee examining health concerns surrounding the Muskrat Falls hydroelectric project.