The defender was stupidly sent off against Germany for Portugal.
With Portugal already trailing 2-0, Pepe ended up in an altercation with German forward Thomas Muller, who went on to score a hat-trick, where Pepe appeared to headbutt his opponent, resulting in his dismissal.
Scholes's ex-team-mate Cristiano Ronaldo captains the Portugal side, and the former midfielder said Ronaldo, along with the rest of the Portugal side, had been let down by Pepe's actions.
In his blog for bookmaker Paddy Power, Scholes said: "Ronaldo is dedicated to his profession like nobody else. I’ve never met a harder-working player. The talent he’s got is incredible. I’ve watched him train hard, go in and do weights, then afterwards he’d be there for two hours practising free-kicks. There is no doubt Ronaldo has become the absolute best he can.
"Ultimately though, against Germany on Monday, he was let down by his Portugal team-mate Pepe. What an absolute clown. One moment of madness can change everything."
Pepe is no stranger to being given his marching orders early on in games as he is notoriously hot-headed, but even with one of the best players in the world in Ronaldo, Portugal were facing an uphill battle given the way the Germans had started, and the fact that Ronaldo wasn't able to get into the game anywhere near enough as he, and his country would have liked him to.
The sending off from Pepe meant Portugal's chances went from little to none as they ended up on the end of a hammering, and despite his temperament he will be missed as Portugal try and bounce back to qualify from a difficult group with Ghana and the USA likely to provide stern tests.