Return to Transcripts main page

American Morning

Street Gang Arrests; Halliburton Charges

Aired March 15, 2005 - 09:30   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. Just about half past the hour on this AMERICAN MORNING. Bill's got the day off. Jack, though, and I are bonding all morning.
JACK CAFFERTY, CNN ANCHOR: Quality time we're spending here together in front of the entire country.

O'BRIEN: Yes, we are. Kumbaya, Jack.

CAFFERTY: Don't touch me.

O'BRIEN: Are officials at the Pentagon standing by Halliburton in the face of some serious charges over charging in Iraq.

Barbara Starr is following that story this morning, and she's also taking a look at where all the millions of dollars are, in fact, going.

CAFFERTY: Federal agents in the process of rounding up street thugs known by the gang name MS-13. These are guys who take care of their enemies using machetes, and they're not even supposed to be in the country to begin with. We'll look at how they're getting in.

O'BRIEN: Another check of the headlines first, though. Kelly Wallace helping us out.

Good morning.

KELLY WALLACE, CNN ANCHOR: Good morning to you. Good morning again, everyone.

A development to get back to you on. We've been telling you about an Amber Alert issued out of Alabama. Well, there is word now that Amber Alert issued out of Alabama for a 14-year-old girl has been canceled. An Alabama Bureau of Investigations spokesperson says that the girl has been safely recovered in Midland City, Alabama.

More information as we get it, and stay tuned to CNN for that.

Moving on now, the suspect in the Atlanta courthouse rampage set to be back in court about 30 minutes from now. Authorities say they are not yet ready to charge Brian Nichols with the shootings. He will be in court for previous charges of rape. Nichols was facing a judge last Friday when he is suspected of overpowering a guard, setting off a 26-hour shooting spree.

In California now, a conservative group says it will fight a ruling in favor of same-sex marriage. A superior court judge has struck down two state laws limiting marriage to a man and a woman. He compared California's marriage ban to racial segregation laws and said just because the ban has always been around doesn't make it constitutional.

Jurors in the Robert Blake murder trial begin another day of deliberations today. The actor is accused of killing his wife, Bonny Lee Bakley, in 2001. Jurors have requested information from the case just once in more than 32 hours of deliberations now.

And immigration -- well, I think that's it. Back to you, guys.

CAFFERTY: Thanks, Kelly, very much.

Immigration customs officials cracking down on what they call one of the largest and most violent street gangs in the country.

In our CNN Security Watch this morning, Bill Tucker reports on the so-called "Operation Community Shield."

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Agents from Immigration and Customs Enforcement arrested 103 members of the violent Hispanic gang MS-13. All but a handful, illegal aliens. Fourteen have been previously deported.

The arrest announced Monday is part of a new anti-gang initiative called Operation Community Shield. Thirty arrests in the New York metropolitan area, 25 in the Washington, D.C., metro area, 17 in Los Angeles, 10 each in Baltimore, Newark, and Miami, and one in Dallas.

The operation involved not only federal agencies from ICE, but local law enforcement, as well.

MICHAEL GARCIA, ASSISTANT SECRETARY, DEPARTMENT OF HOMELAND SECURITY: I think this is a perfect example if we're talking about state and local cooperation on immigration issues. This is a perfect example of where we should put our resources.

TUCKER: People who work with and study gang activity agree.

HEATHER MACDONALD, MANHATTAN INSTITUTE: What we need to do is take it to the next step and have cities like Los Angeles and New York throw out their sanctuary laws, give the police their authority to use immigration violations to target felons and get them off the street.

TUCKER: Sanctuary laws prohibit local police from arresting people only because they're illegal aliens.

MS-13 is a gang which has a reputation of being extremely violent and is active in Central America, as well as here. Its founding members were trained guerrilla fighters from El Salvador. Because of the military connection, some observers have speculated MS-13 would be willing and able to smuggle in terrorists. GARCIA: If you have a large-scale criminal organization operating in the United States, one that is reported to be smuggling: smuggling contraband, smuggling people, exploiting border vulnerabilities, you have to accept that as a homeland security risk, as well, and we do that.

TUCKER (on camera): Garcia does say his agency has yet to find any evidence linking any terrorists group to MS-13, yet he agrees it is not a question of ability, just a matter of money and time.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

CAFFERTY: Stay with CNN day and night for the most reliable news on your security.

O'BRIEN: Questions at the Pentagon right now about more than $100 million that the Halliburton company charged for fuel in Iraq.

Barbara Starr is live at the Pentagon for us this morning.

Hey, Barbara. Good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Halliburton Company, of course, once headed by Vice President Dick Chain, and its subsidiary, Kellogg, Brown & Root, won billions of dollars of contracts to rebuild Iraq, support U.S. troops in Iraq when the war ended.

But now all of that work, all of those contracts are being audited, of course, by the Pentagon. And there are some troubling things, they say, that they have found.

Now, that audit has been released by two Democratic members of Congress, but not by the Pentagon. The Democratic members of Congress want to know why the Pentagon is not putting this audit out. The Pentagon says because there is proprietary business information in it.

But listen to just one example of what the auditors found when they looked at Kellogg, Brown and Root's books. The company proposed at one point purchasing $82,000 worth of liquefied petroleum gas, essentially a fuel that they were going to bring into Iraq after the war -- $82,000. They proposed spending $27 million to transport it into Iraq. The Pentagon auditors called that illogical. So the audit goes on -- Soledad.

O'BRIEN: Well then, Barbara, do you expect that support for Halliburton at the Pentagon is going to start fading?

STARR: Well, it's hard to determine. What they are doing really is now going through all of these billions of dollars of contracts. What the Pentagon auditors say is they do understand in those hectic days after the war when all of this work was being contracted for, it was very difficult for them to insure that everything was being done precisely. They know that things are chaotic. Now they're going back, they're looking at all it, and they want to make sure that everything is in order before they start paying out these bills. So expect these audits to continue, and expect a lot of back and forth between the Defense Department and Halliburton, between the auditors and the company, over whether these costs will all be reimbursed -- Soledad.

O'BRIEN: Those big cost, and also what is happening with that audit is the Question of the Day as well. Barbara Starr at the Pentagon for us.

Barbara, thanks -- Jack.

CAFFERTY: The incredible store of Ashley Smith continues. She's the 26-year-old woman, who Atlanta courthouse shooting suspect Brian Nichols held hostage in her home overnight. While Nichols was armed with as many as three guns during the hostage siege, the only weapon Smith had was her bedside reading. The book, called "The Purpose Driven Life," by Rick Warren, was what she was reading. She read to Nichols during her ordeal.

Warren is traveling in Africa. He has heard Ashley's story, and he released this quote: "I understand Miss Smith shared a portion from the chapter on servanthood with Mr. Nichols, which seemed to have a positive impact on his life. Jesus sometimes calls us in some of the most difficult situations to be an advocate for him and the message he represented while on this Earth," closed quote.

Here's Heidi Collins with more on the author.

(BEGIN VIDEOTAPE)

HEIDI COLLINS, CNN CORRESPONDENT (voice-over): He may not look like a superstar but he has the marquee value of one. Rick Warren is the hottest pastor in the country.

RICK WARREN, "THE PURPOSE-DRIVEN LIFE": Because it's not about you. It's all about God. And so you get full of pride and then you start falling for the same things that the world has been suckering everybody else for. Let me tell you something. The easiest thing to do in the world is lose your focus. Most people are not purpose- driven. They're pressure-driven.

COLLINS: The 50-year-old Warren brought evangelism into the mainstream marketplace, all without a TV or radio ministry. He's done it with a book called "The Purpose-Driven Life," which has topped bestseller lists alongside "The Da Vinci Code" and "The South Beach Diet."

Warren calls it the anti-self-help book.

WARREN: People are looking for meaning in life. They're looking for purpose. We have way too much information in our world and too little meaning.

The thesis is that we were made by God and for God. And until we understand that, life isn't going to make sense. We're not going to know our purpose by looking within.

COLLINS: If people aren't looking within, they're clearly looking into Warren's message.

Every Sunday, as many as 20,000 people flock to his church in Southern California to hear him preach.

WARREN: It's time to grow up. You need to choose God.

COLLINS: And by the end of last year an estimated 30,000 churches used Warren's book in a campaign called "40 Days of Purpose."

WARREN: We have over 2,000 small groups in this church. You could start a small group in your home. You could be a leader there.

COLLINS: The question is, is he creating a blueprint for spiritual growth or just a massive marketing machine?

UNIDENTIFIED FEMALE: Three dollars, unless you're a first-timer, then it's free.

UNIDENTIFIED FEMALE: It's my first time.

COLLINS: In booths outside his church and online, Warren sells Purpose-Driven journals, videotapes, music CDs, even clothing. "Got Purpose?" "Got Dough?" The stir the book has spawned has some publishing insiders scratching their heads.

UNIDENTIFIED FEMALE: Publishers never saw this coming. But even if they had seen it coming, there's very little they could have done to create this kind of marketing buzz.

COLLINS: But Warren, who calls himself a stealth evangelist, says he's not surprised by the success.

WARREN: This is becoming a catalyst that's helping church come alive. That happened not because of some overarching marketing or strategy. It happened because God decided to use it.

COLLINS: And Warren sees no signs of the purpose-driven movement letting up.

WARREN: I think there's a spiritual hunger in people. And I'm very optimistic about the future.

COLLINS: Spoken like a true believer.

Heidi Collins, CNN, New York.

(END VIDEOTAPE)

CAFFERTY: Warren's book has been on "The New York Times" bestseller list for over two years. And based on the events of the last several days, is no doubt destined to remain there for a good while longer.

O'BRIEN: Another look at the weather for the day ahead. Back to Chad Myers. He's got the latest for us.

Hey, Chad, good morning again.

Hey, Chad, you know what? I can see your mouth moving, but I cannot hear a word you're saying. We're going to try to fix that, and we'll get right back to you.

CAFFERTY: All right, still to come, as we continue, a random test and a rare disease.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The fact that our son was one of 200 babies picked, and that they found him, is just an absolute miracle.

(END VIDEO CLIP)

CAFFERTY: Dr. Gupta tells us about a life-saving examination that not every child is getting. That's coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Screening newborns for a broad range of genetic conditions may soon be standard operating procedure nationwide. As our Dr. Sanjay Gupta tells us in today's "House Call," the new guidelines can save lives.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: His mom calls him her miracle baby; 2 1/2 Nathan Gunther was born with a deadly genetic disorder called MCAD. The problem is, nobody knew he had it. But then, by pure chance, when Nathan was 10 months old, his blood was tested as part of a pilot program in Georgia, which was about to add the MCAD test to its newborn genetic screening program.

LAURA GUNTHER, NATHAN'S MOTHER: The disease affects one in 20,000 babies, and The fact that our son was one of 200 babies picked, and that they found him is just an absolute miracle. There's no other explanation for it.

GUPTA: MCAD prevents the body from breaking down stored fat for energy, causing everything from seizures to coma, even death. Nathan would have most likely died in his sleep, but with treatment, he'll soon celebrate his third birthday.

And when Nathan's little brother Thomas was born, doctors knew to test for MCAD. Thomas tested positive, and his treatment began immediately. A random test effectively saving two young lives.

Genetic screening of newborns began in the 1960s. The screening has then expanded significantly, but there's a big difference in what conditions different states test for. Some states test only for four conditions, others as many as 40. DR. PAUL FERNHOFF, GENETICIST: It's parents and parents groups who have been pushing states and all of us in the profession to enlarge newborn screening and make it equitable so that all babies have the same opportunity to have the testing to prevent this death and disability for all children.

GUPTA: Most doctors agree the recommended core group of 29 genetic screening tests are a good idea, but it's not that simple.

UNIDENTIFIED MALE: The problem is there's an additional about 25 other conditions that come up on the testing that we're really not sure. We're not sure whether or not they're really a disease, we're not sure, although we think we have a treatment for, we're not sure that the treatment may prevent the problem from occurring.

GUPTA (on camera): Doctors say education about the benefits and limitations of the testing is key. For most parents of newborns this is all the information they receive - a simple green form with some information about the testing, and a place for the blood samples. More information about newborn genetic screening is available online and everyone should consult their obstetrician. For the Gunthers, testing is a matter of life and death.

GUNTHER: Wouldn't you rather know than not know? Knowing makes tall difference in the world. You can plan your children's life, or you can plan their funeral.

GUPTA (voice-over): Thanks to newborn genetic screening, the Gunthers say Nathan and his little brother, Thomas, will live long and healthy lives.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

O'BRIEN: Something else parents of newborns should know about genetic testing: Many diseases are easily treatable if detected early enough -- Jack.

CAFFERTY: One of the world's smallest cities is also considered the safest. According to a new survey Luxembourg City is the world's top city for personal safety and security. It is followed in order by Helsinki, and the Swiss cities of Bern, Geneva and Zurich. The survey says the safest U.S. cities are Honolulu, Houston, Lexington, Kentucky, San Francisco and Winston-Salem, North Carolina, although the safest U.S. city only comes in 45th on the worldwide list.

Guess what the most dangerous city is?

O'BRIEN: New York?

CAFFERTY: Baghdad.

O'BRIEN: Well, that was a trick question. Well, yes.

CAFFERTY: Ted Fine, our illustrious line producer doesn't have enough to do running this three-hour telethon, managed to pick up that little tidbit of additional information. There'll be absolutely nothing extra in your paycheck however for your efforts. So you're aware.

O'BRIEN: Hey, Martha Stewart is under home arrest, as we know, but that didn't stop her from throwing a party.

Andy explains. He's "Minding Your Business," up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

CAFFERTY: Apparently, there's a little scrap going on in the oil patch. Martha Stewart takes her style into cyberspace. And we get a first check of the markets, all from Andy Serwer, who is "Minding our Business."

ANDY SERWER, "FORTUNE" MAGAZINE: Amazing. We almost had a Martha Stewart-free broadcast, but I've come to the rescue here. I know that's breaking your heart.

Let's talk about the markets first of all. Stocks trading up at this hour on Wall Street. You can see the Dow up 23 points. Nasdaq as well. Retail sales for the month of February coming in very nicely at a .05 percent increase.

Jack alluding to the oil situation, what's going on in Iran at this hour, apparently there's a rift developing between the Saudis and the rest of OPEC. Saudis want to increase oil production, OPEC says no. The Saudis said we're going to go ahead and do that anyway. Be interesting to watch how this plays out.

AIG's stock is down a little bit. They have a new CEO there. Hank Greenberg (ph) leaving. Sears is up a little a bit, a report in "Women's Wear Daily," they're looking to sell the Lands' End catalog business. You remember they bought that in '02 for $1.9 billion. They may be selling it for $1.2 billion today. That's not good math. Sears says it's not for sale, however. So we'll be watching that. Lehman Brothers reporting numbers, that stock is up.

Last night Martha Stewart had a little online chat. Did you miss it? It started at 6:30. She didn't -- Jack missed it. She didn't come on until 8:00. Here are some of the highlights. Let's see. It was from a computer in her kitchen up there in Bedford, New York. That's a picture of her from last week with Alexis. Notice the choreography there, the flowers, the vase, it's all so well done. She said the ankle bracelet is uncomfortable. See, it would go right about -- I don't know if you can see it. Nevermind. Also she says she's not going to write about her five months in Camp Cupcake. She's going to save that for her autobiography, when that comes out.

CAFFERTY: Oh, I was going to say...

SERWER: And what's so interesting is we saw a lot of her before she got the ankle bracelet on and we haven't seen a lot of her since she got the ankle bracelet on. O'BRIEN: It's not a good photo.

SERWER: No, because it goes right -- nevermind.

CAFFERTY: So let's hear it for the ankle bracelet.

SERWER: Very good. That's it. That's all I got.

O'BRIEN: Thanks, Andy.

(CROSSTALK)

SERWER: Yes, indeed.

O'BRIEN: Carol Costello is filling in for Jack this morning. Good morning.

COSTELLO: Good morning. I have the "Question of the Day." Should Halliburton give up its government contracts in Iraq? And boy, we've gotten hundreds of e-mails this morning. People are hot about this issue.

This is from Adam from Farmington, New Hampshire. He says: "Halliburton should not have been in Iraq in the first place. I think we need an independent counsel to investigate the White House and their foreign land deal gone bad."

From Mark in Michigan: "Not only should Halliburton be fired, but so should Congress, who, by the way, would address this situation if it weren't so busy on important things like keeping the minimum wage at its present level and waging a holy war against those evil steroid- using athletes. "

Ooh, that's right up your alley, Jack.

CAFFERTY: I like that. I may have written that.

COSTELLO: This is from J.T. from Duncan, Oklahoma: "As a proud Halliburton employee, we have been hearing politically-driven accusations for months and none have been proven. We have lost around 60 employees in Iraq and our top competition is French-based. Who would you rather have working for our armed forces?"

CAFFERTY: Good point.

O'BRIEN: Interesting question. And it comes back to the money. You know, that's a big old price tag.

COSTELLO: Well, you can't get away from this -- this is a Pentagon audit that found these irregularities in the way Halliburton is doing business in Iraq.

SERWER: Well, they're one to talk. I mean, these are the people with the $700 toilet seat, right?

CAFFERTY: Yes. O'BRIEN: So they know overspending when they see it, you might say.

SERWER: But who's guarding the hen house here, right?

COSTELLO: Yes, we're not saying anything about the workers on the ground. They're fantastic, they're doing dangerous, much-needed work. What we're talking about are the people at the top who are making perhaps more money than they should be.

O'BRIEN: And the bills they're sending out at the end of the day. All right, Carol...

CAFFERTY: How long has it been since the war started in Iraq? They're just getting around to this now?

SERWER: A couple years.

COSTELLO: Well, you know audits take a long time.

O'BRIEN: Thanks, Carol.

COSTELLO: Sure.

O'BRIEN: Well, any minute now we are expecting Atlanta shooting suspect Brian Nichols to have his first court hearing since that deadly spree. "CNN LIVE TODAY" will have the first pictures of that appearance. That's in the next hour with Daryn Kagan. AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

O'BRIEN: We are out of time this morning. Thank you all for filling in.

SERWER: Yes, I'm here. But everyone else has been switched around. Musical chairs, right?

O'BRIEN: Yes, it was. And it worked very nicely. Keeping everyone on their toes.

COSTELLO: And it will be still be kind of switched tomorrow. But then by Thursday or Friday, it will be kind of back to normal. But by Monday...

O'BRIEN: Hemmer's back from his vacation. We hope he's having a good time, by the way. So thanks, guys. We'll see you back here tomorrow morning. That's it for us. We're going you right down to Daryn Kagan. She's over at the CNN Center. She's going to take you through next few hours on "CNN LIVE TODAY."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com


Aired March 15, 2005 - 09:30   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
SOLEDAD O'BRIEN, CNN ANCHOR: Welcome back, everybody. Just about half past the hour on this AMERICAN MORNING. Bill's got the day off. Jack, though, and I are bonding all morning.
JACK CAFFERTY, CNN ANCHOR: Quality time we're spending here together in front of the entire country.

O'BRIEN: Yes, we are. Kumbaya, Jack.

CAFFERTY: Don't touch me.

O'BRIEN: Are officials at the Pentagon standing by Halliburton in the face of some serious charges over charging in Iraq.

Barbara Starr is following that story this morning, and she's also taking a look at where all the millions of dollars are, in fact, going.

CAFFERTY: Federal agents in the process of rounding up street thugs known by the gang name MS-13. These are guys who take care of their enemies using machetes, and they're not even supposed to be in the country to begin with. We'll look at how they're getting in.

O'BRIEN: Another check of the headlines first, though. Kelly Wallace helping us out.

Good morning.

KELLY WALLACE, CNN ANCHOR: Good morning to you. Good morning again, everyone.

A development to get back to you on. We've been telling you about an Amber Alert issued out of Alabama. Well, there is word now that Amber Alert issued out of Alabama for a 14-year-old girl has been canceled. An Alabama Bureau of Investigations spokesperson says that the girl has been safely recovered in Midland City, Alabama.

More information as we get it, and stay tuned to CNN for that.

Moving on now, the suspect in the Atlanta courthouse rampage set to be back in court about 30 minutes from now. Authorities say they are not yet ready to charge Brian Nichols with the shootings. He will be in court for previous charges of rape. Nichols was facing a judge last Friday when he is suspected of overpowering a guard, setting off a 26-hour shooting spree.

In California now, a conservative group says it will fight a ruling in favor of same-sex marriage. A superior court judge has struck down two state laws limiting marriage to a man and a woman. He compared California's marriage ban to racial segregation laws and said just because the ban has always been around doesn't make it constitutional.

Jurors in the Robert Blake murder trial begin another day of deliberations today. The actor is accused of killing his wife, Bonny Lee Bakley, in 2001. Jurors have requested information from the case just once in more than 32 hours of deliberations now.

And immigration -- well, I think that's it. Back to you, guys.

CAFFERTY: Thanks, Kelly, very much.

Immigration customs officials cracking down on what they call one of the largest and most violent street gangs in the country.

In our CNN Security Watch this morning, Bill Tucker reports on the so-called "Operation Community Shield."

(BEGIN VIDEOTAPE)

BILL TUCKER, CNN CORRESPONDENT (voice-over): Agents from Immigration and Customs Enforcement arrested 103 members of the violent Hispanic gang MS-13. All but a handful, illegal aliens. Fourteen have been previously deported.

The arrest announced Monday is part of a new anti-gang initiative called Operation Community Shield. Thirty arrests in the New York metropolitan area, 25 in the Washington, D.C., metro area, 17 in Los Angeles, 10 each in Baltimore, Newark, and Miami, and one in Dallas.

The operation involved not only federal agencies from ICE, but local law enforcement, as well.

MICHAEL GARCIA, ASSISTANT SECRETARY, DEPARTMENT OF HOMELAND SECURITY: I think this is a perfect example if we're talking about state and local cooperation on immigration issues. This is a perfect example of where we should put our resources.

TUCKER: People who work with and study gang activity agree.

HEATHER MACDONALD, MANHATTAN INSTITUTE: What we need to do is take it to the next step and have cities like Los Angeles and New York throw out their sanctuary laws, give the police their authority to use immigration violations to target felons and get them off the street.

TUCKER: Sanctuary laws prohibit local police from arresting people only because they're illegal aliens.

MS-13 is a gang which has a reputation of being extremely violent and is active in Central America, as well as here. Its founding members were trained guerrilla fighters from El Salvador. Because of the military connection, some observers have speculated MS-13 would be willing and able to smuggle in terrorists. GARCIA: If you have a large-scale criminal organization operating in the United States, one that is reported to be smuggling: smuggling contraband, smuggling people, exploiting border vulnerabilities, you have to accept that as a homeland security risk, as well, and we do that.

TUCKER (on camera): Garcia does say his agency has yet to find any evidence linking any terrorists group to MS-13, yet he agrees it is not a question of ability, just a matter of money and time.

Bill Tucker, CNN, New York.

(END VIDEOTAPE)

CAFFERTY: Stay with CNN day and night for the most reliable news on your security.

O'BRIEN: Questions at the Pentagon right now about more than $100 million that the Halliburton company charged for fuel in Iraq.

Barbara Starr is live at the Pentagon for us this morning.

Hey, Barbara. Good morning.

BARBARA STARR, CNN CORRESPONDENT: Good morning to you, Soledad.

Halliburton Company, of course, once headed by Vice President Dick Chain, and its subsidiary, Kellogg, Brown & Root, won billions of dollars of contracts to rebuild Iraq, support U.S. troops in Iraq when the war ended.

But now all of that work, all of those contracts are being audited, of course, by the Pentagon. And there are some troubling things, they say, that they have found.

Now, that audit has been released by two Democratic members of Congress, but not by the Pentagon. The Democratic members of Congress want to know why the Pentagon is not putting this audit out. The Pentagon says because there is proprietary business information in it.

But listen to just one example of what the auditors found when they looked at Kellogg, Brown and Root's books. The company proposed at one point purchasing $82,000 worth of liquefied petroleum gas, essentially a fuel that they were going to bring into Iraq after the war -- $82,000. They proposed spending $27 million to transport it into Iraq. The Pentagon auditors called that illogical. So the audit goes on -- Soledad.

O'BRIEN: Well then, Barbara, do you expect that support for Halliburton at the Pentagon is going to start fading?

STARR: Well, it's hard to determine. What they are doing really is now going through all of these billions of dollars of contracts. What the Pentagon auditors say is they do understand in those hectic days after the war when all of this work was being contracted for, it was very difficult for them to insure that everything was being done precisely. They know that things are chaotic. Now they're going back, they're looking at all it, and they want to make sure that everything is in order before they start paying out these bills. So expect these audits to continue, and expect a lot of back and forth between the Defense Department and Halliburton, between the auditors and the company, over whether these costs will all be reimbursed -- Soledad.

O'BRIEN: Those big cost, and also what is happening with that audit is the Question of the Day as well. Barbara Starr at the Pentagon for us.

Barbara, thanks -- Jack.

CAFFERTY: The incredible store of Ashley Smith continues. She's the 26-year-old woman, who Atlanta courthouse shooting suspect Brian Nichols held hostage in her home overnight. While Nichols was armed with as many as three guns during the hostage siege, the only weapon Smith had was her bedside reading. The book, called "The Purpose Driven Life," by Rick Warren, was what she was reading. She read to Nichols during her ordeal.

Warren is traveling in Africa. He has heard Ashley's story, and he released this quote: "I understand Miss Smith shared a portion from the chapter on servanthood with Mr. Nichols, which seemed to have a positive impact on his life. Jesus sometimes calls us in some of the most difficult situations to be an advocate for him and the message he represented while on this Earth," closed quote.

Here's Heidi Collins with more on the author.

(BEGIN VIDEOTAPE)

HEIDI COLLINS, CNN CORRESPONDENT (voice-over): He may not look like a superstar but he has the marquee value of one. Rick Warren is the hottest pastor in the country.

RICK WARREN, "THE PURPOSE-DRIVEN LIFE": Because it's not about you. It's all about God. And so you get full of pride and then you start falling for the same things that the world has been suckering everybody else for. Let me tell you something. The easiest thing to do in the world is lose your focus. Most people are not purpose- driven. They're pressure-driven.

COLLINS: The 50-year-old Warren brought evangelism into the mainstream marketplace, all without a TV or radio ministry. He's done it with a book called "The Purpose-Driven Life," which has topped bestseller lists alongside "The Da Vinci Code" and "The South Beach Diet."

Warren calls it the anti-self-help book.

WARREN: People are looking for meaning in life. They're looking for purpose. We have way too much information in our world and too little meaning.

The thesis is that we were made by God and for God. And until we understand that, life isn't going to make sense. We're not going to know our purpose by looking within.

COLLINS: If people aren't looking within, they're clearly looking into Warren's message.

Every Sunday, as many as 20,000 people flock to his church in Southern California to hear him preach.

WARREN: It's time to grow up. You need to choose God.

COLLINS: And by the end of last year an estimated 30,000 churches used Warren's book in a campaign called "40 Days of Purpose."

WARREN: We have over 2,000 small groups in this church. You could start a small group in your home. You could be a leader there.

COLLINS: The question is, is he creating a blueprint for spiritual growth or just a massive marketing machine?

UNIDENTIFIED FEMALE: Three dollars, unless you're a first-timer, then it's free.

UNIDENTIFIED FEMALE: It's my first time.

COLLINS: In booths outside his church and online, Warren sells Purpose-Driven journals, videotapes, music CDs, even clothing. "Got Purpose?" "Got Dough?" The stir the book has spawned has some publishing insiders scratching their heads.

UNIDENTIFIED FEMALE: Publishers never saw this coming. But even if they had seen it coming, there's very little they could have done to create this kind of marketing buzz.

COLLINS: But Warren, who calls himself a stealth evangelist, says he's not surprised by the success.

WARREN: This is becoming a catalyst that's helping church come alive. That happened not because of some overarching marketing or strategy. It happened because God decided to use it.

COLLINS: And Warren sees no signs of the purpose-driven movement letting up.

WARREN: I think there's a spiritual hunger in people. And I'm very optimistic about the future.

COLLINS: Spoken like a true believer.

Heidi Collins, CNN, New York.

(END VIDEOTAPE)

CAFFERTY: Warren's book has been on "The New York Times" bestseller list for over two years. And based on the events of the last several days, is no doubt destined to remain there for a good while longer.

O'BRIEN: Another look at the weather for the day ahead. Back to Chad Myers. He's got the latest for us.

Hey, Chad, good morning again.

Hey, Chad, you know what? I can see your mouth moving, but I cannot hear a word you're saying. We're going to try to fix that, and we'll get right back to you.

CAFFERTY: All right, still to come, as we continue, a random test and a rare disease.

(BEGIN VIDEO CLIP)

UNIDENTIFIED FEMALE: The fact that our son was one of 200 babies picked, and that they found him, is just an absolute miracle.

(END VIDEO CLIP)

CAFFERTY: Dr. Gupta tells us about a life-saving examination that not every child is getting. That's coming up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

O'BRIEN: Screening newborns for a broad range of genetic conditions may soon be standard operating procedure nationwide. As our Dr. Sanjay Gupta tells us in today's "House Call," the new guidelines can save lives.

(BEGIN VIDEOTAPE)

DR. SANJAY GUPTA, CNN MEDICAL CORRESPONDENT: His mom calls him her miracle baby; 2 1/2 Nathan Gunther was born with a deadly genetic disorder called MCAD. The problem is, nobody knew he had it. But then, by pure chance, when Nathan was 10 months old, his blood was tested as part of a pilot program in Georgia, which was about to add the MCAD test to its newborn genetic screening program.

LAURA GUNTHER, NATHAN'S MOTHER: The disease affects one in 20,000 babies, and The fact that our son was one of 200 babies picked, and that they found him is just an absolute miracle. There's no other explanation for it.

GUPTA: MCAD prevents the body from breaking down stored fat for energy, causing everything from seizures to coma, even death. Nathan would have most likely died in his sleep, but with treatment, he'll soon celebrate his third birthday.

And when Nathan's little brother Thomas was born, doctors knew to test for MCAD. Thomas tested positive, and his treatment began immediately. A random test effectively saving two young lives.

Genetic screening of newborns began in the 1960s. The screening has then expanded significantly, but there's a big difference in what conditions different states test for. Some states test only for four conditions, others as many as 40. DR. PAUL FERNHOFF, GENETICIST: It's parents and parents groups who have been pushing states and all of us in the profession to enlarge newborn screening and make it equitable so that all babies have the same opportunity to have the testing to prevent this death and disability for all children.

GUPTA: Most doctors agree the recommended core group of 29 genetic screening tests are a good idea, but it's not that simple.

UNIDENTIFIED MALE: The problem is there's an additional about 25 other conditions that come up on the testing that we're really not sure. We're not sure whether or not they're really a disease, we're not sure, although we think we have a treatment for, we're not sure that the treatment may prevent the problem from occurring.

GUPTA (on camera): Doctors say education about the benefits and limitations of the testing is key. For most parents of newborns this is all the information they receive - a simple green form with some information about the testing, and a place for the blood samples. More information about newborn genetic screening is available online and everyone should consult their obstetrician. For the Gunthers, testing is a matter of life and death.

GUNTHER: Wouldn't you rather know than not know? Knowing makes tall difference in the world. You can plan your children's life, or you can plan their funeral.

GUPTA (voice-over): Thanks to newborn genetic screening, the Gunthers say Nathan and his little brother, Thomas, will live long and healthy lives.

Dr. Sanjay Gupta, CNN, Atlanta.

(END VIDEOTAPE)

O'BRIEN: Something else parents of newborns should know about genetic testing: Many diseases are easily treatable if detected early enough -- Jack.

CAFFERTY: One of the world's smallest cities is also considered the safest. According to a new survey Luxembourg City is the world's top city for personal safety and security. It is followed in order by Helsinki, and the Swiss cities of Bern, Geneva and Zurich. The survey says the safest U.S. cities are Honolulu, Houston, Lexington, Kentucky, San Francisco and Winston-Salem, North Carolina, although the safest U.S. city only comes in 45th on the worldwide list.

Guess what the most dangerous city is?

O'BRIEN: New York?

CAFFERTY: Baghdad.

O'BRIEN: Well, that was a trick question. Well, yes.

CAFFERTY: Ted Fine, our illustrious line producer doesn't have enough to do running this three-hour telethon, managed to pick up that little tidbit of additional information. There'll be absolutely nothing extra in your paycheck however for your efforts. So you're aware.

O'BRIEN: Hey, Martha Stewart is under home arrest, as we know, but that didn't stop her from throwing a party.

Andy explains. He's "Minding Your Business," up next on AMERICAN MORNING.

(COMMERCIAL BREAK)

CAFFERTY: Apparently, there's a little scrap going on in the oil patch. Martha Stewart takes her style into cyberspace. And we get a first check of the markets, all from Andy Serwer, who is "Minding our Business."

ANDY SERWER, "FORTUNE" MAGAZINE: Amazing. We almost had a Martha Stewart-free broadcast, but I've come to the rescue here. I know that's breaking your heart.

Let's talk about the markets first of all. Stocks trading up at this hour on Wall Street. You can see the Dow up 23 points. Nasdaq as well. Retail sales for the month of February coming in very nicely at a .05 percent increase.

Jack alluding to the oil situation, what's going on in Iran at this hour, apparently there's a rift developing between the Saudis and the rest of OPEC. Saudis want to increase oil production, OPEC says no. The Saudis said we're going to go ahead and do that anyway. Be interesting to watch how this plays out.

AIG's stock is down a little bit. They have a new CEO there. Hank Greenberg (ph) leaving. Sears is up a little a bit, a report in "Women's Wear Daily," they're looking to sell the Lands' End catalog business. You remember they bought that in '02 for $1.9 billion. They may be selling it for $1.2 billion today. That's not good math. Sears says it's not for sale, however. So we'll be watching that. Lehman Brothers reporting numbers, that stock is up.

Last night Martha Stewart had a little online chat. Did you miss it? It started at 6:30. She didn't -- Jack missed it. She didn't come on until 8:00. Here are some of the highlights. Let's see. It was from a computer in her kitchen up there in Bedford, New York. That's a picture of her from last week with Alexis. Notice the choreography there, the flowers, the vase, it's all so well done. She said the ankle bracelet is uncomfortable. See, it would go right about -- I don't know if you can see it. Nevermind. Also she says she's not going to write about her five months in Camp Cupcake. She's going to save that for her autobiography, when that comes out.

CAFFERTY: Oh, I was going to say...

SERWER: And what's so interesting is we saw a lot of her before she got the ankle bracelet on and we haven't seen a lot of her since she got the ankle bracelet on. O'BRIEN: It's not a good photo.

SERWER: No, because it goes right -- nevermind.

CAFFERTY: So let's hear it for the ankle bracelet.

SERWER: Very good. That's it. That's all I got.

O'BRIEN: Thanks, Andy.

(CROSSTALK)

SERWER: Yes, indeed.

O'BRIEN: Carol Costello is filling in for Jack this morning. Good morning.

COSTELLO: Good morning. I have the "Question of the Day." Should Halliburton give up its government contracts in Iraq? And boy, we've gotten hundreds of e-mails this morning. People are hot about this issue.

This is from Adam from Farmington, New Hampshire. He says: "Halliburton should not have been in Iraq in the first place. I think we need an independent counsel to investigate the White House and their foreign land deal gone bad."

From Mark in Michigan: "Not only should Halliburton be fired, but so should Congress, who, by the way, would address this situation if it weren't so busy on important things like keeping the minimum wage at its present level and waging a holy war against those evil steroid- using athletes. "

Ooh, that's right up your alley, Jack.

CAFFERTY: I like that. I may have written that.

COSTELLO: This is from J.T. from Duncan, Oklahoma: "As a proud Halliburton employee, we have been hearing politically-driven accusations for months and none have been proven. We have lost around 60 employees in Iraq and our top competition is French-based. Who would you rather have working for our armed forces?"

CAFFERTY: Good point.

O'BRIEN: Interesting question. And it comes back to the money. You know, that's a big old price tag.

COSTELLO: Well, you can't get away from this -- this is a Pentagon audit that found these irregularities in the way Halliburton is doing business in Iraq.

SERWER: Well, they're one to talk. I mean, these are the people with the $700 toilet seat, right?

CAFFERTY: Yes. O'BRIEN: So they know overspending when they see it, you might say.

SERWER: But who's guarding the hen house here, right?

COSTELLO: Yes, we're not saying anything about the workers on the ground. They're fantastic, they're doing dangerous, much-needed work. What we're talking about are the people at the top who are making perhaps more money than they should be.

O'BRIEN: And the bills they're sending out at the end of the day. All right, Carol...

CAFFERTY: How long has it been since the war started in Iraq? They're just getting around to this now?

SERWER: A couple years.

COSTELLO: Well, you know audits take a long time.

O'BRIEN: Thanks, Carol.

COSTELLO: Sure.

O'BRIEN: Well, any minute now we are expecting Atlanta shooting suspect Brian Nichols to have his first court hearing since that deadly spree. "CNN LIVE TODAY" will have the first pictures of that appearance. That's in the next hour with Daryn Kagan. AMERICAN MORNING is back in just a moment.

(COMMERCIAL BREAK)

O'BRIEN: We are out of time this morning. Thank you all for filling in.

SERWER: Yes, I'm here. But everyone else has been switched around. Musical chairs, right?

O'BRIEN: Yes, it was. And it worked very nicely. Keeping everyone on their toes.

COSTELLO: And it will be still be kind of switched tomorrow. But then by Thursday or Friday, it will be kind of back to normal. But by Monday...

O'BRIEN: Hemmer's back from his vacation. We hope he's having a good time, by the way. So thanks, guys. We'll see you back here tomorrow morning. That's it for us. We're going you right down to Daryn Kagan. She's over at the CNN Center. She's going to take you through next few hours on "CNN LIVE TODAY."

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com