Did you just update FPC? you probably broken your paths. If sysutils is not found it means FPC.CFG points to wrong units or no units.
Make sure the uncommented -Fu entries in FPC.CFG point to the right paths(make sure the paths version number is same as FPC version number)

Best thing to do (easiest that is) is to uinstall FPC and get 1.9.6 and install it from scratch. If you're in win32 this should be easy.