German characters in location field not recognized

[flippertom]

In LDAP some users have locations which contain German charachters (Umlauts, is what is assume they are called).
In the location -> location mapping I cannot see those characters. (ä is converted to ae)
Location based dynamic fields do not work because of this.

From where does OTRS get these locations. I was assuming it got the list of locations directly from LDAP in which case the characters should have been maintained as they are.
Is there any known way to fix this?