diff --git a/app/models/namespace.rb b/app/models/namespace.rb
index 7fe86440..01366040 100644
--- a/app/models/namespace.rb
+++ b/app/models/namespace.rb
@@ -44,7 +44,7 @@ class Namespace < ActiveRecord::Base
 
   def ensure_dir_exist
     namespace_dir_path = File.join(Gitlab.config.git_base_path, path)
-    Dir.mkdir(namespace_dir_path, 0770) unless File.exists?(namespace_dir_path)
+    system("mkdir -m 770 #{namespace_dir_path}") unless File.exists?(namespace_dir_path)
   end
 
   def move_dir
diff --git a/lib/gitlab/project_mover.rb b/lib/gitlab/project_mover.rb
index 4ee50a1a..4b23a546 100644
--- a/lib/gitlab/project_mover.rb
+++ b/lib/gitlab/project_mover.rb
@@ -16,7 +16,7 @@ module Gitlab
     def execute
       # Create new dir if missing
       new_dir_path = File.join(Gitlab.config.git_base_path, new_dir)
-      Dir.mkdir(new_dir_path, 0770) unless File.exists?(new_dir_path)
+      system("mkdir -m 770 #{new_dir_path}") unless File.exists?(new_dir_path)
 
       old_path = File.join(Gitlab.config.git_base_path, old_dir, "#{project.path}.git")
       new_path = File.join(new_dir_path, "#{project.path}.git")