Attempts to modify $ENV{LD_LIBRARY_PATH} and/or using exec, as suggested, didn't work. I ran into the same or similar problems.

Using truss i could see in which directories the system is looking for the ctlib.so file. One of the directories is /usr/lib. So I copied the sybase libraries to /usr/lib and now setting suid-bits are working as I would expect it to work.

(to be complete: I should replace libct.so in the description by libsybct.so because I had to switch to open client version 15.x instead of 12.x. There has always been a library naming conflict on solaris and sybase has solved this by renaming its libraries as of version 15.0)

Thanks for your contributions,
Luc.