In the three weeks since it was announced, the utility’s decision to bring Molefe back into the fold drew criticism from most political parties, civil society organisations and a vocal public.
Molefe initially left Eskom in November after he was implicated in the State of Capture report by former public protector Thuli Madonsela, which detailed his relationship with the Guptas.
The family was allegedly trying to form a business relationship with the utility through Tegeta Exploration and Resources’ acquisition of the Optimum coal mine.
But on May 12, it was announced Molefe would return to his post at Eskom as chief executive, triggering a backlash from both the ANC and DA.
“Molefe left Eskom under a cloud following the release of the protector's report last year,” spokesperson Zizi Kodwa said at the time.
“The report, while still under review, made observations against Molefe which he had deemed serious and significant enough to warrant his resignation.”
The decision to reinstate Molefe, Kodwa said, was “tone deaf to the public's absolute exasperation and anger” over corruption.
Earlier this week, Public Enterprises Minister Lynne Brown instructed the Eskom board to rescind the decision reappoint Molefe.
The decision was taken by the inter-ministerial committee, appointed by President Jacob Zuma, after Brown faced a harsh grilling by MPs in Parliament the previous week.
On Friday, the board released a statement confirming it had followed Brown’s directive.
“In giving effect to and on the basis of the minister's directive contained in the letter dated May 31, 2017, it was resolved that the resolution of the board of directors taken on May 2, 2017, is rescinded.
“Furthermore, it was resolved that the reinstatement agreement concluded between Mr Molefe and Eskom on May 11, 2017, be rescinded,” the board said in a statement.
“In consequence, Mr Molefe is no longer the group chief executive of Eskom and will no longer serve as a director on the board of Eskom.”
It's unclear if Molefe will return to Parliament as an MP, after he was sworn in earlier this year and resigned in May.