Creating database in PostgreSQL does not work

When you try to create a PostgreSQL database, you get back the following error:

Exception: Database exception: Exception doing query: ERROR: syntax error at or near "$1"
org.apache.manifoldcf.core.interfaces.ManifoldCFException: Database exception: Exception doing query: ERROR: syntax error at or near "$1"
at org.apache.manifoldcf.core.database.Database.executeViaThread(Database.java:461)
at org.apache.manifoldcf.core.database.Database.executeUncachedQuery(Database.java:505)
at org.apache.manifoldcf.core.database.Database$QueryCacheExecutor.create(Database.java:1131)
at org.apache.manifoldcf.core.cachemanager.CacheManager.findObjectsAndExecute(CacheManager.java:144)
at org.apache.manifoldcf.core.database.Database.executeQuery(Database.java:168)
at org.apache.manifoldcf.core.database.DBInterfacePostgreSQL.createUserAndDatabase(DBInterfacePostgreSQL.java:536)
at org.apache.manifoldcf.core.system.ManifoldCF.createSystemDatabase(ManifoldCF.java:656)
at org.apache.manifoldcf.jettyrunner.ManifoldCFJettyRunner.main(ManifoldCFJettyRunner.java:202)
Caused by: org.postgresql.util.PSQLException: ERROR: syntax error at or near "$1"
at org.postgresql.core.v3.QueryExecutorImpl.receiveErrorResponse(QueryExecutorImpl.java:1548)
at org.postgresql.core.v3.QueryExecutorImpl.processResults(QueryExecutorImpl.java:1316)
at org.postgresql.core.v3.QueryExecutorImpl.execute(QueryExecutorImpl.java:191)
at org.postgresql.jdbc2.AbstractJdbc2Statement.execute(AbstractJdbc2Statement.java:452)
at org.postgresql.jdbc2.AbstractJdbc2Statement.executeWithFlags(AbstractJdbc2Statement.java:351)
at org.postgresql.jdbc2.AbstractJdbc2Statement.executeUpdate(AbstractJdbc2Statement.java:305)
at org.apache.manifoldcf.core.database.Database.execute(Database.java:606)
at org.apache.manifoldcf.core.database.Database$ExecuteQueryThread.run(Database.java:421)