--------------------------------------------<snip>------------------------------------------

Just a wild guess.......

You mentioned there is Z/OS 1.6 system which is running without these problems 
and the system which fails is a Z/OS 1.12 system.  Are these two systems 
sharing the RACF database?  Have they run together before the ESS problem?

If they are sharing the RACF database and this might be the first IPL of the 
Z/OS 1.12 system, then I would look at the results of the RACF database 
template upgrade job.  It might be possible the RACF database has not been 
upgraded to the 1.12 level of the templates and RACF could be complaining about 
the downlevel database.

Just my thoughts.......
-------------------------------------------<unsnip>----------------------------------------
It's been my experience that RACF will always initialize with a back-level database, but new functions that require database update and/or template update may or may not function.

Rick

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