Exaplanation of this error is as mentioned below. Please check that out. Please also let us know if somthing changed in recent with your db2 setup like new fix pack installetion etc.. what is the dblevel of your installed db2 ?
A system error occurred. Some possible reasons for this error are:
The database manager is not installed correctly or the environment is not set up correctly.
On UNIX-based systems, db2iupdt may need to be run in order to update the DB2 instance to enable acquisition of a new system configuration or access to function associated with the installation or removal of certain product options, FixPaks, or modification levels.
You might get this message if you are not using the correct DB2 Administration Server password.
The command cannot be processed.
User response
To update the instance to acquire a configuration or access to function run DB2IUPDT <InstName>.
If the error occurred while trying to connect to a database, get a trace (instructions below) and call IBM support.
Thanks
Naval K