Red Hat Network Proxy server generates traceback emails with message "RHN Proxy systemid has wrong permissions"

Issue

• RHN Proxy server generates traceback emails similar to :

Exception Handler Information
Traceback (most recent call last):
File "/usr/share/rhn/proxy/apacheServer.py", line 63, in __call__
ret = f(req)
File "/usr/share/rhn/proxy/apacheHandler.py", line 346, in handler
handlerObj = rhnBroker.BrokerHandler(req)
File "/usr/share/rhn/proxy/broker/rhnBroker.py", line 79, in __init__
self.proxyAuth = proxy.rhnProxyAuth.get_proxy_auth(hostname)
File "/usr/share/rhn/proxy/rhnProxyAuth.py", line 48, in get_proxy_auth
__PROXY_AUTH = ProxyAuth(hostname)
File "/usr/share/rhn/proxy/rhnProxyAuth.py", line 68, in __init__
self.__processSystemid()
File "/usr/share/rhn/proxy/rhnProxyAuth.py", line 77, in __processSystemid
_("RHN Proxy error (RHN Proxy systemid has wrong permissions?). "
rhnFault: (1000, 'RHN Proxy error (RHN Proxy systemid has wrong permissions?). Please contact your system administrator.', 'RHN Proxy error.')