Cabal error: Cannot run c compiled programs

I have an old version of cabal-install so I downloaded cabal-install 1.20 and When installing it errors out. Additional note: ghc 7.8.3
OS: CentOS 6.6
Error: Building network-2.4.2.3... ....... ...... ...... usr/bin/ld: cannot find -lHSparsec-3.1.7-ghc7.8.3 collect2: ld returned 1 exit status error during cabal-install bootstrap: building the network package failed. When I try to run "cabal install network-2.5.0.0",getting following errors root@gains: cabal install network-2.5.0.0 Resolving dependencies... Configuring network-2.5.0.0... configure: WARNING: unrecognized options: --with-compiler, --with-gcc checking build system type... x86_64-unknown-linux-gnu checking host system type... x86_64-unknown-linux-gnu checking for gcc... gcc checking whether the C compiler works... yes checking for C compiler default output file name... a.out checking for suffix of executables... checking whether we are cross compiling... configure: error: in `/tmp/network-2.5.0.023068/network-2.5.0.0': configure: error: cannot run C compiled programs. If you meant to cross compile, use `--host'. See `config.log' for more details cabal: Error: some packages failed to install: network-2.5.0.0 failed during the configure step. The exception was: ExitFailure 1