The Inspector General of Government (IGG) has asked the Anti-Corruption Court to uphold Mukula's conviction and sentence.
The director of legal affairs Sydney Asubo on Monday opposed Mukula's appeal and defended his four-year conviction for embezzling sh210m.
Reacting to the submission by Mukula's lawyers that he was not a government employee, and that it was wrong for magistrate to convict him, Asubo told the Anti-Corruption Court presided by Justice David Wangutusi that Mukula was a government employee because his salary came from government coffers.
Asubo said Mukula was an officer of the government by the time he committed the offence.
A team of eight lawyers: David Mpanga, Ateenyi, Earnest Kalibbala, Oscar Kambona, George Omunyakol, Paul Ekochu and Michael Nakibinge Walugembe are defending Mukula.
Prosecution is led by the director of legal affairs Asubo, Diana Natambazi and Siras Mawano.
Asubo submitted that Mukula received sh263m from Margaret Birabwa after she withdrew the money from Global Fund account at Citibank and forward sh54m to the First Lady's office.
"The convict received the money and did not pass it for its intended purpose and submitted the money several months after, proved that the intention of stealing,"Asubo said.