One of them got promoted to prison guard, he's now in the prison area and guards the treasure room. You'll find him in the cellar of Arhu's house.
!!! Man I swear I talked to everyone in town but never thought of going down into Arhu's basement.
Based on the only 'CLUE' we had, the log entry, I would have thought I'd find them at the clinic or outside talking to the officer drilling the troops. Dang it this game....
