The Police have opened up a case against the Office of the Prime Minister's permanent secretary, Pius Bigirimana, over the diversion of sh1.8b to purchase vehicles for the for the officials.
According to the Police, Bigirimana authorised the diversion of sh1.8bn to the crisis management account without permission from the secretary to the Treasury, Chris Kassami.
The funds were diverted from the sh20.1b that had been earmarked for Peace Recovery and Development Plan (PRDP) activities in northern Uganda for the financial year 2011-2012.
The funds had not originally been budgeted for motor vehicles, according to the Criminal Intelligence and Investigations Directorate (CIID).
The director CIID, Grace Akullo, confirmed that detectives were investigating the matter but she declined to make further comment.
Last week, a team of detectives and OPM suspects went on a fact-finding mission regarding accountability of PRDP projects in northern Uganda.
The OPM's principal accountant, Geoffrey Kazinda, has already been interdicted and charged before the Anti-Corruption Court over the alleged fraud in the office.
Several officials from the OPM, Ministry of Finance and Bank of Uganda have been interdicted. But Bigirimana insists he is the person who blew the whistle over the scam, prompting the investigations that resulted into Kazinda's arrest.