An entry on /etc/default/rcS may be the culprit here:

$ cat /etc/default/rcS | grep UTC
# Set UTC=yes if your system clock is set to UTC (GMT), and UTC=no if not.
UTC=no

Make sure you set UTC to "no" display  your local timezone. You can also try 
running 'tzconfig' to set the timezone properly.
-- 
clock applet shows UTC time not timezone time when NTP used
https://launchpad.net/malone/bugs/15514

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