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Icehouse/Havana cannot import name base issue with Horizon

I am trying to setup horizon for my deployment. However I get an ImportError: cannot import name base

File "/opt/stack/horizon/openstack_dashboard/wsgi/../../openstack_dashboard/api/__init__.py", line 36, in <module> from openstack_dashboard.api import base`
ImportError: cannot import name base

It seems like an issue with paths, where the horizon package is not being installed properly. However, I cannot find a fix, and this affects every page. I am on Ubuntu 12.04. I tried removing the relevant modules from "/usr/local/lib/python2.7/dist-packages/" however that did not help. I tried both icehouse and havana.