The decision to rescind Brian Molefe's reappointment as CEO of Eskom is not a reflection on his capacity but there are no plans to appoint him elsewhere in the government, the inter-ministerial committee set up to investigate his position has said.
The committee, which was headed by Justice Minister Michael Masutha, announced that it had found the decision to reappoint Molefe to head Eskom wrong, and that it had been made without the approval of Minister of Public Enterprises Lynne Brown.
Brown has ordered the board of Eskom to notify Molefe of his ousting and nominate for her consideration two candidates for the position of acting CEO.
The minister said she was to meet the board to iron out the details of Molefe's departure and could not comment on what financial compensation he would be given, if any.
Molefe quit as CEO in November last year following the release of the public protector's State of Capture report.
He was sworn in as an ANC MP in February.
He returned to Eskom in May but his reinstatement was immediately challenged in court by the EFF, the DA and others.
Eskom admitted in court papers that Molefe had erroneously been allowed to take early retirement.
The board also admitted that his pension had mistakenly been calculated under retrenchment provisions. When it realised that errors had been made the board tried to correct them by rescinding his retirement.
Masutha said it was the committee's view that the errors could have been fixed administratively by Eskom and it was in the best interests of good governance and the country that the decision to reinstate him be rescinded.
Finance Minister Malusi Gigaba said that the decisions taken by the Eskom board had done "harm to the reputations" of Eskom, the board and the minister, and should "not have been taken in the first instance".
But, he said, this was not a reflection on Molefe's capability.
"He still has an enormous contribution to make," Gigaba said, but added "there is no decision about where he is going to go.
"There are no plans to appoint him anywhere else."
Although the decision to rescind Molefe's reappointment might strengthen South Africa's stock with global ratings agencies, he believed "state-owned enterprises should not act correctly just to please ratings agencies" but should do so "because they are a public asset".
Brown said the board's performance would be assessed ahead of the Eskom annual general meeting, to be held in three weeks.
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 
