Build problem for dia-0.96 on Mac OSX

[Ben Abbott <bpabbott mac com>]

I downloaded version 0.96 using the link below

        http://ftp.gnome.org/pub/gnome/sources/dia/0.96/dia-0.96.tar.bz2

I'm able to run configure, with out errors, using

        ./configure --prefix=/sw

I used the /sw prefix since I have a Fink installation.

Unfortunately the make failed with ...

-------------------------
[...]
Making all in samples
make[2]: Nothing to be done for `all'.
Making all in po
file=`echo am | sed 's,.*/,,'`.gmo \
  && rm -f $file &&  -o $file am.po
/bin/sh: line 1: -o: command not found
make[2]: *** [am.gmo] Error 127
make[1]: *** [all-recursive] Error 1
make: *** [all] Error 2
### execution of /var/tmp/tmp.0.hw1EZK failed, exit code 2
Removing runtime build-lock...
Removing build-lock package...
/sw/bin/dpkg-lockwait -r fink-buildlock-dia-0.96-0000
(Reading database ... 147939 files and directories currently installed.)
Removing fink-buildlock-dia-0.96-0000 ...
Failed: phase compiling: dia-0.96-0000 failed
-------------------------

The offending portion appears to be

-------------------------
file=`echo am | sed 's,.*/,,'`.gmo \
  && rm -f $file &&  -o $file am.po
-------------------------

This error appears to be in ./po/Makefile and is apparently occurring  
on the line below

-------------------------
.po.gmo:
        file=`echo $* | sed 's,.*/,,'`.gmo \
          && rm -f $$file && $(GMSGFMT) -o $$file $<
-------------------------

The error results due to variable GMSGFMT being is defined as empty

-------------------------
GMSGFMT =
-------------------------

I had no problem with 0.95. However, the same error occurs for 0.96- 
pre9.

... so I have two questions.

(1) What should GMSGFMT be set to?
(2) Is this a bug that should be reported?