Satellite apache throws Internal Server Error ( ISE ) and has Permission denied: /tmp/_rhn_transports errors

Issue

• Red Hat Network Satellite throws Internal Server Errors (ISE)

• Also registering the system fails with :

Problem sending hardware profile:
Error communicating with server. The message was: Internal Server Error

An error has occurred:
Error communicating with server. The message was:
Internal Server Error
See /var/log/up2date for more information

/var/log/up2date contains the following text

Traceback (most recent call last):
  File "/usr/sbin/rhnreg_ks", line 219, in <module>
    cli.run()
  File "/usr/share/rhn/up2date_client/rhncli.py", line 84, in run
    sys.exit(self.main() or 0)
  File "/usr/sbin/rhnreg_ks", line 147, in main
    rhnreg.sendHardware(systemId, hardwareList)
  File "/usr/share/rhn/up2date_client/rhnreg.py", line 510, in sendHardware
    s.registration.add_hw_profile(systemId, _encode_characters(hardwareList))
  File "/usr/share/rhn/up2date_client/rhnserver.py", line 51, in __call__
    return rpcServer.doCall(method, *args, **kwargs)
  File "/usr/share/rhn/up2date_client/rpcServer.py", line 279, in doCall
    raise up2dateErrors.CommunicationError(e.errmsg)
<class 'up2date_client.up2dateErrors.CommunicationError'>: Error communicating with server. The message was:
Internal Server Error