MSU President M. Peter McPherson will be relieved of his duties in Iraq by former Polish Deputy Prime Minister Marek Belka, a U.S. Department of Treasury official said.

U.S. Treasury Spokesman Tony Fratto said Belka officially begins his post on Nov. 1, but McPherson will return to East Lansing before the end of September.

"We knew that he would eventually be returning to his responsibilities in Michigan," Fratto said. "The economic reconstructing of Iraq is crucial to the country's success. He was just absolutely the perfect person for the job."

McPherson served as the financial coordinator for the Office of Reconstruction and Humanitarian Assistance in Iraq. In the month after McPherson returns to MSU and before Belka takes over, the position in Iraq will be handled by George Wolfe, who will act as interim director of economic policy. Wolfe went over to Baghdad with McPherson in May and served as the deputy director for economic policy.

L. Paul Bremer, the U.S. administrator for Iraq who oversees McPherson's work there, appointed Belka to the post.

Some MSU Board of Trustees members were happy to hear about McPherson's return.

"The announcement is great news because it further assures that Peter will be returning as planned," Trustee David Porteous said. "I do hope that he takes several days when he gets back to just rest and recharge his batteries."

The board granted McPherson a 130-day unpaid leave of absence on April 25. McPherson was expected to return to MSU for the start of the fall semester but was asked for an extension by the Bush administration.

An emergency meeting was called by the board on Aug. 18, and McPherson was granted an extension of his duties in Iraq. During the meeting, the board also voted to extend Lou Anna Simon's position as interim president. Since McPherson's departure, Simon has balanced duties as university provost and interim president.

In a meeting on Aug. 21, Simon said she was looking forward to rejoining an administrative alliance with McPherson upon his return.

"You can't reasonably do two jobs well forever," she said. "There might be more of a relief from my spouse, because he'll get to see me more."

Simon said she's been working about 15 hours a day in McPherson's absence. Simon has been provost for 10 years, and the duo of McPherson and Simon is the longest standing in the Big Ten.

Fratto said for the first six weeks of his stay, McPherson lived in one of Saddam's presidential palaces, which isn't as glamorous as it sounds.

The swamp-surrounded palace did not have air conditioning, and McPherson had cope with temperatures that were constantly climbing to more than 100 degrees.

There were no windows in the palace, forcing McPherson and his team to sleep with mosquito nets. MSU's president also had to manage limited water resources, Fratto said.

After about six weeks, he was moved to a small, air-conditioned trailer, which he shared with two other people in his economic team. Fratto said a group of bodyguards accompanied McPherson every time he left the compound, and when he traveled by car, he would ride in a bullet- and bomb-proof sport utility vehicle.

Besides all of the obstacles McPherson experienced, Fratto said he's accomplished a lot.

"Before McPherson took over, Iraqi's bank system was corrupt. It basically operated to serve the needs of Saddam's cronies," Fratto said. "A banking system that is more advanced and able to serve the people of Iraq was one of our highest priorities."

Fratto said McPherson helped set up a new bank system, called Central Bank of Iraq. McPherson's team also eliminated two useless forms of currency called the "Swiss Dinar" and the "Saddam Dinar."

A new form of currency called the "New Iraqi Dinar" will be implemented between Oct. 15 and Jan. 15, Fratto said.

The group also set up a finance ministry, a department designed to pay citizens working for the new Iraqi government.

McPherson set a great example for the next economic-policy developers to follow, Fratto said.

"McPherson's work is crucial and will have a long-standing benefit to the people of Iraq."

Antonio Planas can be reached at planasan@msu.edu.