RHEV : Upgrade failed with permission denied errors on engine database

Issue

• Upgrading the RHEV environment to next minor/major using engine-setup fails with the below errors

2017-04-12 18:10:03 DEBUG otopi.plugins.ovirt_engine_setup.ovirt_engine.config.aaajdbc plugin.execute:941 execute-output: ['/usr/share/ovirt-engine-extension-aaa-jdbc/dbscripts/schema.sh', '-s', 'localhost', '-p', '5432', '-u', 'engine', 
'-d', 'engine', '-e', 'aaa_jdbc', '-l', '/var/log/ovirt-engine/setup/ovirt-engine-setup-20170412180647-ys7ayy.log', '-c', 'apply'] stderr:
ERROR:  permission denied for database engine
FATAL: Cannot execute sql command: --no-psqlrc --command=CREATE SCHEMA aaa_jdbc AUTHORIZATION engine;

2017-04-12 18:10:03 DEBUG otopi.context context._executeMethod:156 method exception
Traceback (most recent call last):
  File "/usr/lib/python2.6/site-packages/otopi/context.py", line 146, in _executeMethod
    method['method']()
  File "/usr/share/ovirt-engine/setup/bin/../plugins/ovirt-engine-setup/ovirt-engine/config/aaajdbc.py", line 379, in _misc
    self._setupSchema()
  File "/usr/share/ovirt-engine/setup/bin/../plugins/ovirt-engine-setup/ovirt-engine/config/aaajdbc.py", line 138, in _setupSchema
    oenginecons.EngineDBEnv.PGPASS_FILE
  File "/usr/lib/python2.6/site-packages/otopi/plugin.py", line 946, in execute
    command=args[0],
RuntimeError: Command '/usr/share/ovirt-engine-extension-aaa-jdbc/dbscripts/schema.sh' failed to execute
2017-04-12 18:10:03 ERROR otopi.context context._executeMethod:165 Failed to execute stage 'Misc configuration': Command '/usr/share/ovirt-engine-extension-aaa-jdbc/dbscripts/schema.sh' failed to execute
2017-04-12 18:10:03 DEBUG otopi.transaction transaction.abort:134 aborting 'Yum Transaction'