I found out that I have extra line in my HTTPD conf file that do the Alias of the folder to the hostname/IP /mrtg that is causing the problem as it actually point to another mrtg file which does not contain the mrtg.cfg.
After which I did a service httpd restart and everythiing is fine now.
MRTG ROCKS!
After which I did a service httpd restart and everythiing is fine now.

MRTG ROCKS!