How to adjust MU sub site admin permission

Running buddy press 2.0 on WPMU 3.9 using sub domains.

So, here is one of my sub sites http://sccs.hubbli.com

Buddypress has an option:
"Enable group creation for all users
- Administrators can always create groups, regardless of this setting."

But for some reason when that option is not checked my site administrators are not able to see the "Create Group" button on the front end.

Infact, only I as the network-admin have the ability to see the Groups settings in the dashboard of any sub site.

How do I allow my sub site administrators to access the Group settings in the Dash board and to see the "Create Group" button on the buddy press groups page?