The version of /usr/sbin/setclock distributed with RedHat
6.1 (timeconfig-3.0-5) interprets the values in
/etc/sysconfig/clock slightly differently from the rest of
the system. Whereas /etc/rc.d/rc.sysinit checks whether the
variables $UTC or $ARC are set to "yes" or "true",
/usr/sbin/setclock only checks for the value "true".
This problem is compounded by the fact that the RH install
process sets $UTC to "yes" in /etc/sysconfig/clock (if a UTC
hardware clock is requested). So the default install will
read the value from the hardware clock at system startup as
UTC, but when /usr/sbin/setclock is used to reset the
hardware clock it may fail to use UTC.
Fixed in timeconfig-3.0.1-1.