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A flaw was found [1] in the way 389 Directory Server and Red Hat Directory Server handled logging to the audit log. When a user changed their password in the directory, the new password would be written to the audit log in plaintext. Although the directory server administrator can configure the path and permissions of the audit log, by default it is mode 0600, owned by the directory server user, and is located in the directory server log directory (/var/log/dirsrv/slapd-[hostname]), which is mode 0770 and owned by the directory server user ("nobody", by default) [1] https://fedorahosted.org/389/ticket/365
This issue has been addressed in following products: Red Hat Enterprise Linux 6 Via RHSA-2012:0997 https://rhn.redhat.com/errata/RHSA-2012-0997.html
This issue has been addressed in following products: Red Hat Directory Server 8 for RHEL 5 Via RHSA-2012:1041 https://rhn.redhat.com/errata/RHSA-2012-1041.html
Created 389-ds-base tracking bugs for this issue Affects: epel-5 [bug 835669]
Created 389-ds-base tracking bugs for this issue Affects: fedora-all [bug 835668]
This was fixed in 389-ds-base 1.3.0.a1. A patch was included in the Fedora 17 1.2.11.6-1 package, and Fedora 18 has 1.3.0, so I would consider this fixed. A patch was included in the EPEL5 1.2.10.11-1 package to correct this.