Cricket South Africa on Friday decided to withdraw their independent inquiry against batsman Herschelle Gibbs following the conclusion of an ICC Code of Conduct hearing into the related incident.
"We have accepted (ICC Appeals Commissioner) Richie Benaud's findings in rejecting Herschelle Gibbs' appeal. We particularly welcome the fact that Benaud has emphatically cleared Herschelle of any allegations of racism," CSA Chief Executive Officer Gerald Majola said in a statement.
"The CSA's disciplinary hearing was set before the ICC announced its charges. Now that the ICC has completed its process, we have decided that there is no point in charging Herschelle twice in this matter."
Gibbs was banned for two Tests following his abusive remarks, aimed at a section of the crowd, which was picked up and aired by stumped microphones during the first Test against Pakistan.
Former Australian captain Benaud rejected Gibbs' appeal against the ban but clarified that his verdict did not mean that he thought the player to be a racist.
"At (Match Referee) Chris Broad's hearing (Pakistan team manager) Talat Ali spoke about the offence the words used by Herschelle would give to the whole Pakistan nation. I am not surprised,"Benaud wrote in his verdict. More
Benaud amended the ban to one Test, one limited overs international and one Twenty-20 international since ICC Code specifies that the ban should apply to the immediate next matches that followed.
Gibbs said in a statement from Cape Town that he was disappointed at missing the third Test.
"I am really disappointed to be missing the Castle Test match in front of my home ground and the next two matches the Proteas will be playing.
"However, I am glad that I have now had a proper opportunity to explain myself.
"I feel it is important that Mr Benaud has confirmed that I am not racist. I have apologised if my remarks inadvertently caused offence, and that apology still stands. I regard the matter as now closed, and I will now concentrate on cricket," he added.