The money was misappropriated by corrupt officials in the Office of the Prime Minister, the Ministry of Finance and the Bank of Uganda.
He has also asked his Department to examine ways in which it could help the Ugandan authorities to recover the funds through a version of our Criminal Assets Bureau.
In a statement this afternoon, Mr Gilmore said he had received assurances from the highest level in the government in Kampala that it will fully repay the aid money.
He said the money was misappropriated by corrupt officials in the Office of the Prime Minister, the Ministry of Finance and the Bank of Uganda.
He lauded the swift response to what he called "very grave concerns" that he had conveyed to the administration less than a fortnight ago.
Two senior officials have been charged while 17 have been suspended without pay while investigations continue.
All were implicated in the fraud by the country's Auditor General.
Three officials travelled from Dublin to Uganda last week to investigate the scandal and Mr Gilmore promised to review in detail the report from his Department's Audit and Evaluation unit over the coming weeks.
Before the controversy erupted, Ireland had provided financial and technical support to Uganda's Auditor General's Office.
The Tánaiste is considering ways in which Ireland might further help to enhance its capacities.
Last week, Uganda's Prime Minister had said he was not aware of the scandal until the story broke.
Apologising for what had happened, Mr Patrick Amama Mbabazi told RTÉ radio's This Week programme that while some of the money was fraudulently paid into private accounts, not all of it was misappropriated.
"They used it for the purpose for which it was intended although it was irregularly managed," he said.
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