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CNN Wolf Blitzer Reports

Senate Showdown Nears; Family Comments on Tillman Death; Iraq Insurgency Continues Efforts; Crestor Side Effects Debated; Bank Information Accessed Illegally

Aired May 23, 2005 - 17:00   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.


BLITZER: Happening now, the U.S. Senate showdown only hours away. Here in Washington, they're calling it a nuclear meltdown, but the stakes for you are enormous. Stand by for hard news on "WOLF BLITZER REPORTS."
(BEGIN VIDEOTAPE)

BLITZER (voice-over): Civil war: Iraqi extremists dragging each other to the edge of the abyss.

Protests and pyramids: the first lady reflects on her Middle East mission.

LAURA BUSH, FIRST LADY: We knew when we came here, that these are places of great emotion.

BLITZER: Chopping and slicing: they sell a lot of sausage, but why are the knives tied to the table?

UNIDENTIFIED MALE: We have very strict security guidelines.

BLITZER: This butcher shop is behind bars.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, May 23rd, 2005.

BLITZER (on camera): Thanks for joining us.

It's the issue at the core of the so-called culture wars: for more than a generation a flash point that has shaped a divisive national debate over medicine, religion, the law and politics. For the first time in five years, the United States Supreme Court will hear arguments over abortion. The court announced today it will review New Hampshire's parental notification law, nullified by an appeals court because it didn't include an exemption for medical emergencies. The Supreme Court will reconvene in October and when it does, it could have a different look. There's widespread speculation the ailing chief justice, William Rehnquist, may retire.

Abortion and the prospect of future court rulings on abortion are fueling the current Senate debate over judicial nominees. Democrats have been staging a filibuster to block some of President Bush's nominees, but tomorrow, Republicans are expected to try to take that weapon away. Our congressional correspondent Joe Johns, joining us now live with the latest from Capitol Hill.

JOE JOHNS, CONGRESSIONAL CORRESPONDENT: Wolf, the final push is beginning now and there is growing pessimism that the Senate will find a way out, short of a showdown vote.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): The ceremonial arrival of the sleeping cots at the Capitol signalled a protracted debate, the intention of the congressional leadership to work late into the night, even all night. Putting a finer point on it, Senate Majority Leader Bill Frist went to the floor just before noon arguing the Senate has spent enough time debating the judicial nomination of Priscilla Owen.

SEN. BILL FRIST (R), MAJORITY LEADER: And today marks the 20th day of Senate floor debate on Justice Owen's nomination. We have spent more floor time on Priscilla Owen than on all the sitting Supreme Court justices, combined.

JOHNS: With the votes to end debate and kill the filibuster for judicial nominees likely to occur in less than 24 hours, President Bush himself kept up the pressure.

PRES. GEORGE W. BUSH, UNITED STATES: People ought to have a fair hearing and they ought to get an up or down vote on the floor.

JOHNS: Talks to head off the showdown were expected to continue Monday evening, but the Democratic leader was pessimistic.

SEN. HARRY REID (D), MINORITY LEADER: I would hope something can still be worked out, but I think each day that goes by the possibility is less. I think the odds of something being worked out now are very, very remote.

JOHNS: The Senate's senior Democrat who was involved in last week's talks was already expressing resignation.

SEN. ROBERT BYRD (D), WEST VIRGINIA: And, so, my heart is sad that we would even come to a moment such as this. Sad, sad, sad. Sad, it is.

JOHNS: And Senator Elizabeth Dole of North Carolina whose husband was once majority leader, praised the current leader but included a note of inevitability.

SEN. ELIZABETH DOLE (R), NORTH CAROLINA: So let the record be clear: the majority leader has pursued compromise with vigor, and he should be commended for doing so. But, of course, when compromise fails, action must take its place.

(END VIDEOTAPE)

JOHNS: Negotiations do continue. Another meeting is scheduled later this evening. Senator John McCain, who's involved in those negotiations has said it could be the last chance. Wolf?

BLITZER: All right, we'll watch this together with you. Joe Johns on Capitol Hill. Thanks very much.

Other news we're following, is Iraq slipping into civil war? Dozens died today in a long day of car bombs, suicide strikes and mortar attacks. Evening brought absolutely no let-up. That's when a car blew up outside a Shiite mosque just south of Baghdad. At about the same time, twin car bombings killed at least 15 people in the northern city of Telfair (ph) -- the target, a celebration of the home of a Sheikh who had recently survived an assassination attempt. CNN's Ryan Chilcote is in Baghdad with a look at the day's earlier attacks.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT, BAGHDAD: It's been an exceptionally violent day in Iraq after a relative lull in the violence over the last week, week-and-a-half. At least four bombing attacks, alone already today.

We start with the most recent and lethal attack. It was a car bombing attack outside of a Baghdad restaurant in a Shiite neighborhood. Apparently, that restaurant was packed with people. It happened at lunchtime. The figures have been changing on casualties there, but the Iraqi police now tell us at least 10 Iraqis were killed in that attack, at least another 100 wounded.

Then, three other attacks. We start just south of Kirkuk, a suicide bomber there, targeting a government building, blowing himself up in a car, killing five Kurdish soldiers, wounding another 13 Iraqis. Then, in the city of Mosul, another suicide bomber in a car, targeting a crowd, wounding at least four Iraqis, and finally, in the city of Samarra, a very sophisticated, elaborate attack on U.S. forces, involving two suicide car bombers. Both these suicide car bombers approached a checkpoint, blowing themselves up. Then, as U.S. military troops responded to the aftermath there, another suicide bomber -- this one on foot, wearing one of those so-called suicide bomber-vest appeared. U.S. soldiers shot him but he was still able to blow himself up, injuring four of those U.S. soldiers.

Finally, the U.S. and Iraqi militaries have launched an operation they're calling "Squeeze Play." It's basically another one of these cordon-and-search operations where the troops move in, seal off a neighborhood and then search virtually everything they can find in that area. What's different about Operation Squeeze Play, according to the U.S. military is it is the largest joint U.S.-Iraqi military operation in the Iraqi capitol yet. They're saying that there's some seven battalions of Iraqi troops involved -- that's about 2,000 troops. They're also saying that Iraqi forces have already detained some 285 suspected insurgents.

Ryan Chilcote, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: He was a pro football player who gave up fame and fortune to serve his country. Then, Pat Tillman gave up his life for his country in Afghanistan, but he was killed by fellow Army Rangers in a friendly fire incident, and now his family is accusing the U.S. Army of a cover-up. Let's go live to our senior Pentagon correspondent, Jamie McIntyre. Jamie?

JAMIE MCINTYRE, SR PENTAGON CORRESPONDENT: Well, Wolf, Army's officials confirmed to CNN that the Army's own investigation into this matter concluded that the failure to acknowledge that Pat Tillman died from friendly fire contributed to quote, "a (SIC) atmosphere of suspicion on the part of the family," and that suspicion is only growing deeper. His mother and father now telling the "Washington Post," they believe the Army intentionally lied to them as part of a cover-up.

Tillman's father, Patrick Sr., told the "Post," quote, "they realized that their recruiting efforts were going to hell in a hand basket if the truth about his death got out. They blew up their poster boy." Tillman, of course, was a 27-year-old defensive back for the Arizona Cardinals when he turned down a $3.6 million pro-football deal to serve his country after September 11. The Army initially said he died in a firefight with Taliban fighters last year in Afghanistan. It was more than a month before they acknowledged the painful truth.

In response to the family's angry comments, the Army gave CNN a statement. It reads, in part, "The Army reaffirms its heartfelt sorrow to the Tillman family and all families who have lost loved ones during this war. ...in the case of the death of Cpl. Patrick Tillman, the Army made mistakes in reporting the circumstances of his death to the family. For these, we apologize. We cannot undo those early mistakes."

And among the mistakes Army officials tell CNN was keeping his own brother, Tillman's own brother, who is also an Army Ranger and served in the same unit -- keeping him in the dark for a month as well. Wolf?

BLITZER: Jamie McIntyre reporting. What a sad story. Thanks very much, Jamie, for that.

When we come back, honor, killing, and the sign of trouble for women in Afghanistan after a young woman is believed to have been murdered for acting too modern.

Data deception -- it may be the largest breach of bank security in American history. Could your personal information and your money now be at risk?

Also, ahead...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I've never had a job before, you know, and to me, just, I like it. I like it.

(END VIDEO CLIP)

BLITZER: Prisoners, including convicted killers, working as butchers while serving time behind bars. Our Brian Todd is on the scene.

(COMMERCIAL BREAK)

BLITZER: Welcome back. He's a vital U.S. ally in a tough neighborhood, but Afghanistan's president, Hamid Karzai, complains the alliance is a bit out of balance. He took his issues to President Bush today. Let's go live to the White House. Our correspondent Dana Bash standing by. Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, the young democracy of Afghanistan is growing, and its president hoped to use his third White House meeting to win more independence, but he did not seem to get what he was looking for.

(BEGIN VIDEOTAPE)

BASH (voice over): Three-and-a-half years after American forces helped drive the Taliban out of his country, Hamid Karzai came to the White House to tell the president, it's time he has more say over U.S. troops there. He got no promises.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Of course, our troops will respond to U.S. commanders. But our U.S. commanders and our diplomatic mission there is in a consultive relationship with the government.

BASH: President Karzai is under political pressure at home to assert more control over U.S. military operations and made his position clear Sunday on CNN.

HAMID KARZAI, AFGHANISTAN PRESIDENT: Operations that involve going to people's homes, that involves knocking on people's doors must stop, must not be done without the permission of the Afghan government.

BASH: But the U.S. wants broad powers to pursue terror suspects. So while Mr. Bush promised consultation, a new partnership agreement suggests President Karzai did not get the control he was seeking.

U.S. and coalition forces are to continue to have the freedom of action required to conduct appropriate military operations, it said. The two leaders took pains to talk up their special relationship, but growing grievances were hard to mask. Mr. Bush complained there is still too much illegal poppy cultivation for heroin in Afghanistan. And President Karzai also left without a pledge for more custody over Afghan prisoners. Mr. Karzai said new details of alleged abuse of Afghan detainees made him, quote, "sad," but tried to downplay the significance.

KARZAI: We recognize individual acts do not reflect either on governments or in societies.

BASH: He called a retracted "Newsweek" report U.S. interrogators desecrated the Koran a gossip column, and seemed to contradict White House claims the magazine was responsible for deadly protests in his country.

KARZAI: Those demonstrations were, in reality, not related to the "Newsweek" story. They were more against the elections in Afghanistan.

(END VIDEOTAPE)

BASH: And in an apparent attempt to try to calm emotions over that issue, President Karzai talked about his experience going to mosques in the United States and the overall tolerance he's seen in this country towards Muslims. And he also said, Wolf, quote, the "Newsweek" story is not America's story.

BLITZER: Dana Bash reporting for us at the White House. Thanks, Dana.

It's being called an honor killing, and it may show just how far Afghanistan has to go, in terms of equal rights and equal protection under the law for women. Let's go live to the State Department, Andrea Koppel standing by there. Andrea?

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: You know, Wolf, in Europe or even here in the states, Shaima Rezayee's behavior as kind of a VJ or a host of one of Afghanistan's independent TV programs would hardly raise an eyebrow. There were no bare midriffs. She didn't have a pierced belly button. But her behavior didn't stop her from first getting fired from her job, and then getting killed.

(BEGIN VIDEOTAPE)

KOPPEL (voice over): Before she was murdered last week, 24-year- old Shaima Rezayee had hosted this MTV-like music program in Afghanistan. During the show, called "Hop," Rezayee's fans watched her mingle openly with men in a country where most women are still hidden behind be burkas, a small sign of progress.

But Afghanistan's religious leaders condemned Rezayee's Western style clothing and her program as un-Islamic, eventually pressuring the TV station to fire her in March. Two months later, Rezayee was shot in the head at her home. Afghan police now reportedly suspect Rezayee's family in carrying out an honor killing.

ZAINAB SALBI, WOMEN FOR WOMEN INTERNATIONAL: What it says about the Afghan society is a lot of the measurements that were used by Talibans, in terms of traditional sharia laws, in terms of women's behavior being public discussion and not protected by the legal code are still issues that are running in Afghanistan.

KOPPEL: Three-and-a-half years after the U.S. overthrew the Taliban, there are signs life for Afghan women is still a work in progress. More girls are in school than before. And following last October's election, President Hamid Karzai's cabinet now has three women ministers.

At the White House, where he hosted Afghanistan's president, Mr. Bush sounded optimistic about the future for Afghan women.

BUSH: A shift of opinion is taking place in Afghanistan, where now women are equal partners in society. KOPPEL: But some women's advocacy groups say, not so fast. They point to the recent kidnapping of Italian aide worker Clementina Cantoni (ph) as another troubling sign of the return of fundamentalist attacks on women.

SALBI: If we do not pay attention, and if we do not respond quick enough for this, it may impact other women in a larger scale.

KOPPEL: in the case of Shaima Rezayee, she was also considered a journalist. And according to the watchdog group Reporters Without Borders, was the first journalist to be killed in Afghanistan since the Taliban fell. The group is also calling for a thorough and independent investigation into her murder. Wolf.

BLITZER: Andrea Koppel. That was an excellent report. Thanks very much for bringing it to our viewers.

The first lady, Laura Bush, in Egypt, visiting that country's version of Sesame Street. But the trip is definitely not all kid stuff. She talks to our Suzanne Malveaux about the protesters and getting up close and personal.

Also, outrage as lawmakers learn that some convicted sex offenders -- yes, convicted sex offenders are getting Viagra, courtesy of all of us, courtesy of taxpayers. We'll show you what's being done.

And some are sizzling; others are soaked. Wild weather in the western United States. We'll take you there.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Is Iraq already on the verge of an all- out civil war? Dozens of people died today in a seemingly endless round of bombings.

Is there a way out?

Joining us now our world affairs analyst, the former defense secretary, William Cohen. He's the chairman and CEO of the Cohen Group here in Washington. Mr. Secretary, it looks like the Sunnis are really going after the Shia and the Iraqi Shia are responding.

WILLIAM COHEN, FORMER DEFENSE SECRETARY: Well, this has always been a challenge, in terms of trying to bring the Sunni's into the power structure as such. Because what they want now is a return to power, which they can't have given the dynamics under way with the majority of Shia now in control. But there is some positive news today, at least potentially, and that is with Muqtada al-Sadr, the rebel Shia cleric, as such. Who wants to become or has sent indication he wants to become part of the political process to bring the Sunnis into the political process. That may be one way out, but certainly, we're going to have to take it step by step.

But ultimately, the Shia are the majority. They have to establish processes that take into account the rights of the minority. But the Sunnis are not going to be able to return to power in the sense they've had in the past. So, what we'll need is more and more of the Iraqi people helping the intelligence people to ferret out those individuals who are making the bombs and blowing up innocent Iraqis. This is something that the Iraqi people are going to have to join on a wholesale basis or else this is going to continue the way it is today, and delay that time where there can be a Democratic society.

BLITZER: Is there a sense of these insurgents, most of whom are Iraqi Sunnis, how popular they are among Sunnis in general inside Iraq?

COHEN: I don't think we have any idea, in terms of how popular they are. They are pursuing a very unpopular tactic, and that is to blow innocent people up. That can't be a winning strategy for them ultimately. The question is, are they becoming stronger, so that the other Sunni people and the Shia become discouraged about the future and then don't participate in the political process. That's the danger we face, if they continue to go unrestrained and we don't have the kind of help we need from the Iraqi people to find out who these people are, where they are and help track them down before the bombs go off, then there's a real danger we'll lose that campaign.

BLITZER: Let me switch gears and pick your brain from your previous life before. You were the defense secretary during the Clinton administration. You were a Republican senator in the U.S. Senate, from Maine for many years before that in the House of Representatives. What's your sense, as you see this showdown in the -- in the Senate right now. It's going to be resolved one way or another tomorrow morning over a filibuster of these judicial nominees.

COHEN: Well, I think it's distressing for all of us who have served so many years in the United States Senate and House of Representatives. What we're seeing is a break down of civility. We're seeing a poisonous atmosphere. We're seeing partisanship played out in a major way. And frankly, ultimately, if the -- if the so- called nuclear option occurs, I think a very bad term. Very inappropriate to talk...

BLITZER: Well, the Republicans call it the constitutional option.

COHEN: Well, whatever the option is, it should not be referred to as nuclear option, because it diminishes the significance of what we're talking about with nuclear weapons. And they confuse some people of what's taking place. But ultimately, this is going to change the Senate. It's going to make it more like the House of Representatives. It is going to change the checks and balance, as the founders envisioned our system, well into the future, and I think it's a mistake. I hope they can work out a compromise. But I would not want to see a majority rule on judicial nominees or anything else. I think it's important that the Senate be able to slow things down and indeed, even impede them until the political process can work itself out. That this does truly reflect a super majority on key issues like judges and other major issues that come before the Senate.

BLITZER: So, if you were still a Republican senator in the U.S. Senate from Maine right now, you'd vote against Bill Frist?

COHEN: Would vote with John McCain, Olympia Snowe, hopefully Susan Collins and others who are in the middle on this issue, who want to preserve the institution of the Senate. And I think most people don't relate to this. They see inside the ball park, which is not related to their lives. It's very much related to the future course of our system under a checks and balances as envisioned by the founding fathers. So, I would vote to try the compromise about, yes.

BLITZER: As I said at the top of the show, the stakes for all sides, especially American people are enormous. Right now, a lot of people aren't paying attention to what they should be paying attention too. Thanks very much, Mr. Secretary, for joining us.

We'll take another quick break.

When we come back, data debacle. A scheme to steal information on more than 100,000 bank customers is uncovered. And you won't believe who may be behind the scam.

Plus, meeting the Muppets. From hostile protesters yesterday to fuzzy friends today. We'll have an update on the first lady's good will tour through the Middle East.

Also, new action being taken against that pilot who caused the security scare in here Washington.

(COMMERCIAL BREAK)

BLITZER: Welcome back. A data theft involving some of the largest banks in the United States -- is your personal information right now at risk? We'll take a closer look.

First, let's get a quick check on some other stories "Now in the News." The Justice Department says a Pennsylvania man has been arrested for allegedly trying to build and sell a bomb to someone he thought was member of al Qaeda. Instead, it turned out to be an undercover agent. The suspect is set to appear in court today in Houston.

The Federal Aviation Administration is taking action against the pilot of a small plane who caused a major security scare here in Washington earlier in the month. The government has revoked the pilot's license and banned him from flying for at least a year. The FAA is not taking any actions against the plane's passenger who was a student pilot.

The mayor of Spokane, Washington, says he will complete his term in office despite allegations he used his title to meet young men. There have been calls for James West to step down after the accusations surfaced in a local newspaper. West denies he has done anything inappropriate.

First Lady Laura Bush visited the pyramids today and with Egypt's first lady, taped a segment for the local version of "Sesame Street." She also took time for a one-on-one interview with our Suzanne Malveaux, who's traveling with Mrs. Bush in the Middle East. All in all, it was an easier stop than the one the first lady had yesterday in Jerusalem.

Here's Suzanne's report.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: Sunday, momentary chaos erupted on the first lady's goodwill tour. Her foray into Middle East diplomacy temporarily turned tense as protesters at both Muslim and Jewish holy sites in Jerusalem turned on the first lady.

But Mrs. Bush says reports of the trouble were highly exaggerated. She talked about it with us on her next stop at the Egyptian pyramids.

MALVEAUX: What was going on through your head or through your heart at the moment, when there was that hostility that was expressed towards you?

LAURA BUSH, FIRST LADY: Well, I mean, it was very small moment and I was surrounded by people who were very, very welcoming. It's not the first time. It certainly happens, as you might know, during a campaign all across the United States.

MALVEAUX: On a campaign, the jostling of crowds, tight security and the competitive cameras yes, but not a secondary moving shield, nor what I witnessed at Islam's Dome at the Rock -- an Israeli policeman who had drawn his gun on a young boy who was approaching the first lady. Mrs. Bush said she was aware that visiting these highly sensitive religious sites might lead to protests.

L. BUSH: We know, we knew when we came here, that these are places of great emotion.

MALVEAUX: But, despite it all, Mrs. Bush insisted she never felt in danger.

Did you speak with the president about it? Was he worried for you?

L. BUSH: Sure, after he saw your coverage, he was a little worried.

MALVEAUX: What did he think?

L. BUSH: What did he -- oh, well, I called him to -- he called, actually -- to find out, and I told him that we were fine, that I felt it'd been a little bit built up.

MALVEAUX: I was just feet away from the first lady during much of the time and the pictures were not always clear. This man, who yelled at Mrs. Bush, "your husband kills Muslims," was just one of handful of protesters at the Islamic shrine.

Israeli police were mostly concerned with containing overzealous Israel press. It was at the Western Wall, where about 40 young women pleaded for Mrs. Bush to free a convicted Israeli spy.

L. BUSH: I come to these countries in friendship.

MALVEAUX: Perhaps, but is the White House rethinking the danger involved when the first lady pays a call? As far as Mrs. Bush is concerned, she's not.

L. BUSH: I wouldn't say it's a risk. It's not a risk. You know, this is a -- there's a very important mission behind all of this and it's certainly not taking a risk, myself. I'm perfectly safe.

MALVEAUX: Although it was relatively small number of protesters, because of where they were and who they were targeting, they made a big impact, a typical scenario for a political hot spot in the Middle East,

Suzanne Malveaux, CNN, Cairo.

(END VIDEOTAPE)

BLITZER: Let's take a quick look at some other news making headlines "Around the World."

India's Prime Minister Singh visited a New Delhi hospital after a pair of theater bombings killed one person and injured dozens more. The attacks are under investigation but the theaters were showing a movie that had been condemned by some Siekh religious leaders.

Bolivia protests: thousands of demonstrators marched in Bolivia to demand nationalization of the oil industry. A new law increases taxes on foreign oil companies operating inside Bolivia, but the demonstrators say that law doesn't go far enough.

The great race, hundreds of people from all over the world ran a marathon along part of the 2000-year-old Great Wall of China. The course included more than 3,700 steps. The winner was an American citizen who lives in Shanghai. That's our look "Around the world."

A new report on the side effect of cholesterol-lowering drugs, plus the disturbing story involving your tax dollars. Wait until you hear who's getting the drug Viagra, all paid for by Medicaid, also ahead.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Knives are checked in the morning to make sure they're all there. They're checked at lunchtime to make sure they're all there. They're checked in the evening, when the guys go back in.

(END VIDEO CLIP)

BLITZER: Prison butchers, an unusual job for men behind bars, but can their new knife-wielding skills help keep them out of trouble? We'll have a report.

And later, Western meltdown, stifling heat creating a new problem for some residents.

(COMMERCIAL BREAK)

BLITZER: A new report out today takes a closer look at the side effects of cholesterol-lowering drugs. The study, released by the American Heart Association, finds side effects are more likely to occur with the drug Crestor than other cholesterol-lowering drugs. These include muscle damage and kidney failure. It's important to note that the side effects were rare and occurred in the first weeks of therapy. AstraZeneca, the company that makes Crestor, issued a statement saying quote, "we strongly disagree with the conclusion of this study." It goes on to say, "AstraZeneca again reaffirms that the safety profile of Crestor is in line with other marketed statins, and is a highly effective cholesterol-lowering therapy."

It's the outrage story of the week. Listen to this -- convicted sex offenders getting Viagra at taxpayer expense. Our Mary Snow is joining us now live from New York with more on what's being done -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, from taxpayers to lawmakers there is shock at this practice. And today, New York's Governor George Pataki says that he ordered the State Division of Patrol -- Parole, that is, to stop the practice. Others are calling on a new federal law.

(BEGIN VIDEOTAPE)

SNOW (voice-over): The question of just who is getting Viagra was a red flag raised by a whistle blower. New York state's controller said it investigated and found taxpayers, through Medicaid, were paying for Viagra for 198 level three sex offenders classified by the courts as the most likely to reoffend. Public to politicians, there's strong reaction.

UNIDENTIFIED MALE: I just think that's outrageous.

UNIDENTIFIED FEMALE: Those particular people are getting Viagra? May I ask why?

SNOW: The question is echoed by Laura Ahearn, the head of Parents for Megan's Law, a law that makes information about sex offender available to the public.

LAURA AHEARN, PARENTS FOR MEGAN'S LAW: It's a complete outrage. It's like giving a loaded gun to a murderer.

SNOW: Congressman Joe Barton in a statement said, "It's hard to imagine a more perverse misuse of the taxpayer's money and I'm going to do everything in my power to stop it. New York's comptroller says the policy is the result of unintended consequences from of a 1998 Health and Human Services directive to reimburse recipient for Viagra. And that he says broaden's the problem.

UNIDENTIFIED MALE: This problem is not a New York problem, it's a national problem. This -- this directive was applied to every state.

SNOW: The question is are other states also paying for Viagra for sex offenders through Medicaid. The Centers for Medicare and Medicaid Service says it is unclear. But says Medicaid should not pay for the cost of erectile dysfunction drugs for sex offenders. It cited confusion over the 1998 directive. And said, it will be putting out further guidance to the states.

New York Senator Charles Schumer is calling for federal legislation.

SEN. CHUCK SCHUMER (D), NEW YORK: It's clear here that the left hand doesn't know what the right hand is doing. In a large thing like government, that can happen. But now, they ought to do a thorough check and see what kind of medication is Medicaid giving out to people who shouldn't have them for one reason or another?

(END VIDEOTAPE)

SNOW: And the Centers for Medicare and Medicare Services points out, that states already have the power to determine if a particular drug is medically not appropriate for a certain patient or group of patients -- Wolf.

BLITZER: Mary Snow reporting for us. Thanks, Mary, very much.

Coming up at the top of the hour, "LOU DOBBS TONIGHT." Lou's standing by in New York with a little preview. What do you got, Lou?

LOU DOBBS, HOST, LOU DOBBS REPORTS: Wolf, thank you.

At 6:00 p.m. Eastern tonight, we'll be reporting on the bitter debate over filibusters and judicial appointments. Senators preparing for what will be an all night debate. A critical vote nearing.

Is an embryo human life? Should federal dollars pay embryonic stem cell research? The top congressman on both sides of the issue will be our special guest tonight.

And the Reverend Al Sharpton today demanded an apology from Mexico's president, Vicente Fox for his offensive comments about blacks in America. Reverend Sharpton is our guest tonight live from Mexico City. All that and a great deal more at the top of the hour. Please join us.

Now back to you, Wolf.

BLITZER: Thanks very much, Lou. We'll be watching.

We'll take a quick break. When we come back, an amazing story. Listen to this -- prison butchers. Why are convicted felons getting access to knives in a medium secure prison?

And later record heat after record snow falls, the consequences of extreme weather. That's coming up as well.

(COMMERCIAL BREAK)

BLITZER: Bad news potentially for hundreds of thousands of customers of two major banks in the United States. Their personal financial records may be in the hands of crooks right now. Our Chris Huntington is standing by with the story. He is in New York -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Well, Wolf, this case comes at a time of growing concern about identity theft. What is particularly disturbing about this case based here in New Jersey, is that authorities believe that high level employees at some of the nation's biggest banks were helping criminals traffic in personal information.

(BEGIN VIDEOTAPE)

HUNTINGTON (voice-over): The U.S. Treasury is calling it the biggest breach of bank security in U.S. history. Hackensack, New Jersey Police cracked the case following up on a residential burglary. They say this man, Orazin "Ozzy" Lembo, masterminded a scheme to illegally sell personal information and bank account numbers of at least 676,000 people to a collection agency. Authorities say Lembo had help, highly placed insiders at Bank of America, Wachovia, PNC Financial, Commerce Bank and the New Jersey Department of Labor.

Hackensack police Chief Ken Zisa says Lembo called his operation DRL Associates, and ran it from his residence at this condominium complex. Siza says authorities are still learning about Lembo's operation and his intentions.

CHIEF KEN ZISA, HACKENSACK POLICE: Accounts were being looked at, and certainly that is a great cause for concern, as well as being unlawful. But we also have a concern as to how that information would ultimately be used. Certainly, identity theft is of great concern as it relates to this case.

HUNTINGTON: According to Zisa, the scam worked like this, Lembo would get names and Social Security Numbers from a collection agency who wanted to find out bank account information. Lembo's associates such as this Commerce Bank manager and his assistant manager, would cross-check the names against bank account information. They are among 10 people arrested in the operation. Lembo would pay the operatives $10 per match, but would sell the information back to the collection agency for as much as $150.

Authorities believe Lembo operated the scam for nearly four years and may have made as much as $4 million. Commerce Bank could not be reached for comment, Deiva (ph), Wachovia, and PNC have notified customers and are cooperating with authorities.

(END VIDEOTAPE)

HUNTINGTON: Now, Lembo nor his attorney could be reached this afternoon. Authorities have charged Lembo with nine crimes, including racketeering. If he's convicted on all of those crimes, he faces a cumulative total of 130 years in prison and more than a million dollars in fines. One other footnote, Lembo pleaded guilty in 1998 to a similar crime also here in New Jersey. The crime then was commercial bribery. Authorities tell us that this was a similar scheme that he was trying on a smaller scale back in the late '90s -- Wolf.

BLITZER: And if you have money in those banks, you may want to check with those banks to determine what to do. Chris Huntington is with us in Hackensack, New Jersey. Chris, thanks very much.

Now, this next question, would you hand a butcher knife to a convicted murderer? They've been doing that for years at a prison in Maryland.

CNN's Brian Todd has the story.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Watching them chop meat, pack down hamburger patties or hang sausage, the obvious first impression, this is your standard butcher shop.

Look a little closer, you notice the knives are tethered to the tables. Look outside, you'll see barbed wire and guard towers. This shop is on the grounds of the medium security state prison in Hagerstown, Maryland. These butchers are convicted felons.

FRED WILLIAMSON, INMATE BUTCHER: Oh, it's beautiful. I mean, it's the opportunity of a lifetime for me.

TODD: Fred Williamson has been behind bars for nine years, convicted of attempted murder and robbery with a deadly weapon, a knife. Mark Grant's in for murder. For Grant, Williamson and all these men, wielding sharp knives doesn't tempt them to violence. Quite the opposite.

MARK GRANT, INMATE BUTCHER: I never had a job ever. You know, to me, just, I like it. I like it.

TODD: Seventy-five hardened criminals work here every day, with free access to knives that weren't even tied down until a few years ago. There are no armed guards inside the plant. Their supervisor says he's never even felt threatened here.

MICHAEL FAGER, MEAT PLANT MANAGER: Now, we have very strict security guidelines. Knives are checked in the morning to make sure they're all there. They're checked in at lunchtime to make sure they're all there. They're checked in in the evening when the guys go back in.

TODD: Security's not a problem, he says, because these jobs are coveted. With a waiting list of 300, they only hire the best behaved inmates.

Williamson explains the attraction.

WILLIAMSON: And all we resorted to was illegal means. You know what I'm saying? Which resulted to be coming back to prison. And so I wanted to -- I wanted to get a career, skill, and a career trade that would help me.

TODD (on camera): And it certainly helps the state. For 13 years, this plant has been part of a very successful industry inside the Maryland prison system. This shop alone had more than $5 million in sales last year.

(voice-over): The meat's bought only by state institutions like colleges and hospitals. By law, these plants can't compete with private meat packers. Some of the profit is used for salaries, equipment and training for these men; some of it goes to other state programs.

Prisoner advocate groups complain that these jobs, while voluntary, are the equivalent of slave labor. State officials say these inmates make $160 a month, which is OK with everyone we talked to.

GRANT: The pay could be better. You know, I'm not complaining, but the pay could be better.

TODD: But Mark Grant and his co-workers believe they're building something here. State officials say among these men, the recidivism rate, people sent back to jail after their release, is about half that of the general prison population in Maryland.

Fred Williamson expects to get out by January of 2007, stay out, and stay in this line of work.

WILLIAMSON: There's a guy that tells me now he has a job waiting for me in Park Heights in Baltimore. All I have to do is get there.

TODD: Brian Todd, CNN, Hagerstown, Maryland.

(END VIDEOTAPE)

BLITZER: And when we come back, temperatures so hot out West, even this bear -- look at this -- a bear couldn't resist taking a dip in a pool, a swimming pool in a backyard. We'll get to that. First, though, CNN's Kyra Phillips has our special anniversary series, CNN "Then & Now." Today, she profiles Douglas Wilder.

(BEGIN VIDEOTAPE)

KYRA PHILLIPS, CNN CORRESPONDENT (voice-over): Lawrence Douglas Wilder has earned a reputation exploring unchartered territory, politically as well as racially. He graduated from the private all- black Virginia Union University, after being turned away from all- white schools in his native Virginia.

Doug Wilder went on to become a celebrated criminal lawyer, state senator, lieutenant governor, and in 1990, the first black governor ever elected in the U.S.

GOV. DOUGLAS WILDER (D), VIRGINIA: The people of Virginia have spoken tonight. PHILLIPS: To demonstrate distaste for his state's history of slavery, Wilder chose to take his oath of office outside Virginia's Capitol, a building that had served as the Confederate Capitol during the Civil War.

Now, at 74, he's beginning a new phase of public service. Last November, following a historic change in the city charter, he became the first mayor elected by the people, rather than the council, in his hometown, Richmond.

WILDER: What is it that we are to do and who are you there for? You're there to represent the people.

PHILLIPS: Today, Mayor Doug Wilder is a common sight on the streets of Richmond, and Virginia Commonwealth University, where he teaches political science.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Summer is still officially weeks away, but millions of people in the Western U.S. are already suffering through sizzling temperatures, and what might seem to be an unusual consequence -- flooding. First, the heat.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It has got to be over 100 degrees in my room right now. I live on the fourth floor. It's like a sauna.

BLITZER (voice-over): Phoenix, Arizona. Forecast high today, 109 degrees. And residents of this apartment building are facing it without air conditioning.

UNIDENTIFIED FEMALE: How hot is your apartment?

UNIDENTIFIED MALE: Hard telling. It's just stifling, though, even with the ceiling fan on. It's bad.

BLITZER: And it's not just Phoenix. People throughout the West are sweating out temperatures in the 80s, 90s and triple digits. Apparently unbearable for this bear, caught on tape cooling off in the pool of a Southern California home.

Hot, yes, but not unheard of.

JACQUI JERAS, CNN METEOROLOGIST: It's not that unusual to see the triple digits this early in the season. Phoenix, for example, usually hits 100 by May 5th, and we didn't hit it until just a week ago. However, what is a little bit more unusual is to see it this widespread, covering so much real estate.

BLITZER: In the Rockies, warm weather is stealing the spring thaw; combining with an above average snow pack to cause flooding in parts of western Colorado. UNIDENTIFIED FEMALE: I have seen people with water up to here, to their -- above their waist.

UNIDENTIFIED MALE: They said it's going to be worse. I think it is going to be worse, because there's still a lot more snow up there.

BLITZER: Some residents are bracing with sandbags. And it's not just the Rockies facing a washout.

JERAS: We got flood watches across much of the Sierras, across parts of the Rockies, into the Wasatch and the Uinter ranges, so many of the mountain chains across the West are going to have to worry about this over the next several days. The heat is going to continue at least until the middle to the latter part of the week. So this will be a concern at least until Friday.

(END VIDEOTAPE)

BLITZER: Three people drowned over the weekend in Colorado River; two of them on rafting trips. So far, though, authorities have not said the deaths were the result of high water.

That's it for me. I'm Wolf Blitzer in Washington. "LOU DOBBS TONIGHT" starts right now, Lou standing by in New York with more -- Lou.

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Wolf, thank you very much.

END

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 May 23, 2005 - 17:00   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
BLITZER: Happening now, the U.S. Senate showdown only hours away. Here in Washington, they're calling it a nuclear meltdown, but the stakes for you are enormous. Stand by for hard news on "WOLF BLITZER REPORTS."
(BEGIN VIDEOTAPE)

BLITZER (voice-over): Civil war: Iraqi extremists dragging each other to the edge of the abyss.

Protests and pyramids: the first lady reflects on her Middle East mission.

LAURA BUSH, FIRST LADY: We knew when we came here, that these are places of great emotion.

BLITZER: Chopping and slicing: they sell a lot of sausage, but why are the knives tied to the table?

UNIDENTIFIED MALE: We have very strict security guidelines.

BLITZER: This butcher shop is behind bars.

(END VIDEOTAPE)

ANNOUNCER: This is WOLF BLITZER REPORTS for Monday, May 23rd, 2005.

BLITZER (on camera): Thanks for joining us.

It's the issue at the core of the so-called culture wars: for more than a generation a flash point that has shaped a divisive national debate over medicine, religion, the law and politics. For the first time in five years, the United States Supreme Court will hear arguments over abortion. The court announced today it will review New Hampshire's parental notification law, nullified by an appeals court because it didn't include an exemption for medical emergencies. The Supreme Court will reconvene in October and when it does, it could have a different look. There's widespread speculation the ailing chief justice, William Rehnquist, may retire.

Abortion and the prospect of future court rulings on abortion are fueling the current Senate debate over judicial nominees. Democrats have been staging a filibuster to block some of President Bush's nominees, but tomorrow, Republicans are expected to try to take that weapon away. Our congressional correspondent Joe Johns, joining us now live with the latest from Capitol Hill.

JOE JOHNS, CONGRESSIONAL CORRESPONDENT: Wolf, the final push is beginning now and there is growing pessimism that the Senate will find a way out, short of a showdown vote.

(BEGIN VIDEOTAPE)

JOHNS (voice-over): The ceremonial arrival of the sleeping cots at the Capitol signalled a protracted debate, the intention of the congressional leadership to work late into the night, even all night. Putting a finer point on it, Senate Majority Leader Bill Frist went to the floor just before noon arguing the Senate has spent enough time debating the judicial nomination of Priscilla Owen.

SEN. BILL FRIST (R), MAJORITY LEADER: And today marks the 20th day of Senate floor debate on Justice Owen's nomination. We have spent more floor time on Priscilla Owen than on all the sitting Supreme Court justices, combined.

JOHNS: With the votes to end debate and kill the filibuster for judicial nominees likely to occur in less than 24 hours, President Bush himself kept up the pressure.

PRES. GEORGE W. BUSH, UNITED STATES: People ought to have a fair hearing and they ought to get an up or down vote on the floor.

JOHNS: Talks to head off the showdown were expected to continue Monday evening, but the Democratic leader was pessimistic.

SEN. HARRY REID (D), MINORITY LEADER: I would hope something can still be worked out, but I think each day that goes by the possibility is less. I think the odds of something being worked out now are very, very remote.

JOHNS: The Senate's senior Democrat who was involved in last week's talks was already expressing resignation.

SEN. ROBERT BYRD (D), WEST VIRGINIA: And, so, my heart is sad that we would even come to a moment such as this. Sad, sad, sad. Sad, it is.

JOHNS: And Senator Elizabeth Dole of North Carolina whose husband was once majority leader, praised the current leader but included a note of inevitability.

SEN. ELIZABETH DOLE (R), NORTH CAROLINA: So let the record be clear: the majority leader has pursued compromise with vigor, and he should be commended for doing so. But, of course, when compromise fails, action must take its place.

(END VIDEOTAPE)

JOHNS: Negotiations do continue. Another meeting is scheduled later this evening. Senator John McCain, who's involved in those negotiations has said it could be the last chance. Wolf?

BLITZER: All right, we'll watch this together with you. Joe Johns on Capitol Hill. Thanks very much.

Other news we're following, is Iraq slipping into civil war? Dozens died today in a long day of car bombs, suicide strikes and mortar attacks. Evening brought absolutely no let-up. That's when a car blew up outside a Shiite mosque just south of Baghdad. At about the same time, twin car bombings killed at least 15 people in the northern city of Telfair (ph) -- the target, a celebration of the home of a Sheikh who had recently survived an assassination attempt. CNN's Ryan Chilcote is in Baghdad with a look at the day's earlier attacks.

(BEGIN VIDEOTAPE)

RYAN CHILCOTE, CNN CORRESPONDENT, BAGHDAD: It's been an exceptionally violent day in Iraq after a relative lull in the violence over the last week, week-and-a-half. At least four bombing attacks, alone already today.

We start with the most recent and lethal attack. It was a car bombing attack outside of a Baghdad restaurant in a Shiite neighborhood. Apparently, that restaurant was packed with people. It happened at lunchtime. The figures have been changing on casualties there, but the Iraqi police now tell us at least 10 Iraqis were killed in that attack, at least another 100 wounded.

Then, three other attacks. We start just south of Kirkuk, a suicide bomber there, targeting a government building, blowing himself up in a car, killing five Kurdish soldiers, wounding another 13 Iraqis. Then, in the city of Mosul, another suicide bomber in a car, targeting a crowd, wounding at least four Iraqis, and finally, in the city of Samarra, a very sophisticated, elaborate attack on U.S. forces, involving two suicide car bombers. Both these suicide car bombers approached a checkpoint, blowing themselves up. Then, as U.S. military troops responded to the aftermath there, another suicide bomber -- this one on foot, wearing one of those so-called suicide bomber-vest appeared. U.S. soldiers shot him but he was still able to blow himself up, injuring four of those U.S. soldiers.

Finally, the U.S. and Iraqi militaries have launched an operation they're calling "Squeeze Play." It's basically another one of these cordon-and-search operations where the troops move in, seal off a neighborhood and then search virtually everything they can find in that area. What's different about Operation Squeeze Play, according to the U.S. military is it is the largest joint U.S.-Iraqi military operation in the Iraqi capitol yet. They're saying that there's some seven battalions of Iraqi troops involved -- that's about 2,000 troops. They're also saying that Iraqi forces have already detained some 285 suspected insurgents.

Ryan Chilcote, CNN, Baghdad.

(END VIDEOTAPE)

BLITZER: He was a pro football player who gave up fame and fortune to serve his country. Then, Pat Tillman gave up his life for his country in Afghanistan, but he was killed by fellow Army Rangers in a friendly fire incident, and now his family is accusing the U.S. Army of a cover-up. Let's go live to our senior Pentagon correspondent, Jamie McIntyre. Jamie?

JAMIE MCINTYRE, SR PENTAGON CORRESPONDENT: Well, Wolf, Army's officials confirmed to CNN that the Army's own investigation into this matter concluded that the failure to acknowledge that Pat Tillman died from friendly fire contributed to quote, "a (SIC) atmosphere of suspicion on the part of the family," and that suspicion is only growing deeper. His mother and father now telling the "Washington Post," they believe the Army intentionally lied to them as part of a cover-up.

Tillman's father, Patrick Sr., told the "Post," quote, "they realized that their recruiting efforts were going to hell in a hand basket if the truth about his death got out. They blew up their poster boy." Tillman, of course, was a 27-year-old defensive back for the Arizona Cardinals when he turned down a $3.6 million pro-football deal to serve his country after September 11. The Army initially said he died in a firefight with Taliban fighters last year in Afghanistan. It was more than a month before they acknowledged the painful truth.

In response to the family's angry comments, the Army gave CNN a statement. It reads, in part, "The Army reaffirms its heartfelt sorrow to the Tillman family and all families who have lost loved ones during this war. ...in the case of the death of Cpl. Patrick Tillman, the Army made mistakes in reporting the circumstances of his death to the family. For these, we apologize. We cannot undo those early mistakes."

And among the mistakes Army officials tell CNN was keeping his own brother, Tillman's own brother, who is also an Army Ranger and served in the same unit -- keeping him in the dark for a month as well. Wolf?

BLITZER: Jamie McIntyre reporting. What a sad story. Thanks very much, Jamie, for that.

When we come back, honor, killing, and the sign of trouble for women in Afghanistan after a young woman is believed to have been murdered for acting too modern.

Data deception -- it may be the largest breach of bank security in American history. Could your personal information and your money now be at risk?

Also, ahead...

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: I've never had a job before, you know, and to me, just, I like it. I like it.

(END VIDEO CLIP)

BLITZER: Prisoners, including convicted killers, working as butchers while serving time behind bars. Our Brian Todd is on the scene.

(COMMERCIAL BREAK)

BLITZER: Welcome back. He's a vital U.S. ally in a tough neighborhood, but Afghanistan's president, Hamid Karzai, complains the alliance is a bit out of balance. He took his issues to President Bush today. Let's go live to the White House. Our correspondent Dana Bash standing by. Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, the young democracy of Afghanistan is growing, and its president hoped to use his third White House meeting to win more independence, but he did not seem to get what he was looking for.

(BEGIN VIDEOTAPE)

BASH (voice over): Three-and-a-half years after American forces helped drive the Taliban out of his country, Hamid Karzai came to the White House to tell the president, it's time he has more say over U.S. troops there. He got no promises.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Of course, our troops will respond to U.S. commanders. But our U.S. commanders and our diplomatic mission there is in a consultive relationship with the government.

BASH: President Karzai is under political pressure at home to assert more control over U.S. military operations and made his position clear Sunday on CNN.

HAMID KARZAI, AFGHANISTAN PRESIDENT: Operations that involve going to people's homes, that involves knocking on people's doors must stop, must not be done without the permission of the Afghan government.

BASH: But the U.S. wants broad powers to pursue terror suspects. So while Mr. Bush promised consultation, a new partnership agreement suggests President Karzai did not get the control he was seeking.

U.S. and coalition forces are to continue to have the freedom of action required to conduct appropriate military operations, it said. The two leaders took pains to talk up their special relationship, but growing grievances were hard to mask. Mr. Bush complained there is still too much illegal poppy cultivation for heroin in Afghanistan. And President Karzai also left without a pledge for more custody over Afghan prisoners. Mr. Karzai said new details of alleged abuse of Afghan detainees made him, quote, "sad," but tried to downplay the significance.

KARZAI: We recognize individual acts do not reflect either on governments or in societies.

BASH: He called a retracted "Newsweek" report U.S. interrogators desecrated the Koran a gossip column, and seemed to contradict White House claims the magazine was responsible for deadly protests in his country.

KARZAI: Those demonstrations were, in reality, not related to the "Newsweek" story. They were more against the elections in Afghanistan.

(END VIDEOTAPE)

BASH: And in an apparent attempt to try to calm emotions over that issue, President Karzai talked about his experience going to mosques in the United States and the overall tolerance he's seen in this country towards Muslims. And he also said, Wolf, quote, the "Newsweek" story is not America's story.

BLITZER: Dana Bash reporting for us at the White House. Thanks, Dana.

It's being called an honor killing, and it may show just how far Afghanistan has to go, in terms of equal rights and equal protection under the law for women. Let's go live to the State Department, Andrea Koppel standing by there. Andrea?

ANDREA KOPPEL, CNN STATE DEPARTMENT CORRESPONDENT: You know, Wolf, in Europe or even here in the states, Shaima Rezayee's behavior as kind of a VJ or a host of one of Afghanistan's independent TV programs would hardly raise an eyebrow. There were no bare midriffs. She didn't have a pierced belly button. But her behavior didn't stop her from first getting fired from her job, and then getting killed.

(BEGIN VIDEOTAPE)

KOPPEL (voice over): Before she was murdered last week, 24-year- old Shaima Rezayee had hosted this MTV-like music program in Afghanistan. During the show, called "Hop," Rezayee's fans watched her mingle openly with men in a country where most women are still hidden behind be burkas, a small sign of progress.

But Afghanistan's religious leaders condemned Rezayee's Western style clothing and her program as un-Islamic, eventually pressuring the TV station to fire her in March. Two months later, Rezayee was shot in the head at her home. Afghan police now reportedly suspect Rezayee's family in carrying out an honor killing.

ZAINAB SALBI, WOMEN FOR WOMEN INTERNATIONAL: What it says about the Afghan society is a lot of the measurements that were used by Talibans, in terms of traditional sharia laws, in terms of women's behavior being public discussion and not protected by the legal code are still issues that are running in Afghanistan.

KOPPEL: Three-and-a-half years after the U.S. overthrew the Taliban, there are signs life for Afghan women is still a work in progress. More girls are in school than before. And following last October's election, President Hamid Karzai's cabinet now has three women ministers.

At the White House, where he hosted Afghanistan's president, Mr. Bush sounded optimistic about the future for Afghan women.

BUSH: A shift of opinion is taking place in Afghanistan, where now women are equal partners in society. KOPPEL: But some women's advocacy groups say, not so fast. They point to the recent kidnapping of Italian aide worker Clementina Cantoni (ph) as another troubling sign of the return of fundamentalist attacks on women.

SALBI: If we do not pay attention, and if we do not respond quick enough for this, it may impact other women in a larger scale.

KOPPEL: in the case of Shaima Rezayee, she was also considered a journalist. And according to the watchdog group Reporters Without Borders, was the first journalist to be killed in Afghanistan since the Taliban fell. The group is also calling for a thorough and independent investigation into her murder. Wolf.

BLITZER: Andrea Koppel. That was an excellent report. Thanks very much for bringing it to our viewers.

The first lady, Laura Bush, in Egypt, visiting that country's version of Sesame Street. But the trip is definitely not all kid stuff. She talks to our Suzanne Malveaux about the protesters and getting up close and personal.

Also, outrage as lawmakers learn that some convicted sex offenders -- yes, convicted sex offenders are getting Viagra, courtesy of all of us, courtesy of taxpayers. We'll show you what's being done.

And some are sizzling; others are soaked. Wild weather in the western United States. We'll take you there.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Is Iraq already on the verge of an all- out civil war? Dozens of people died today in a seemingly endless round of bombings.

Is there a way out?

Joining us now our world affairs analyst, the former defense secretary, William Cohen. He's the chairman and CEO of the Cohen Group here in Washington. Mr. Secretary, it looks like the Sunnis are really going after the Shia and the Iraqi Shia are responding.

WILLIAM COHEN, FORMER DEFENSE SECRETARY: Well, this has always been a challenge, in terms of trying to bring the Sunni's into the power structure as such. Because what they want now is a return to power, which they can't have given the dynamics under way with the majority of Shia now in control. But there is some positive news today, at least potentially, and that is with Muqtada al-Sadr, the rebel Shia cleric, as such. Who wants to become or has sent indication he wants to become part of the political process to bring the Sunnis into the political process. That may be one way out, but certainly, we're going to have to take it step by step.

But ultimately, the Shia are the majority. They have to establish processes that take into account the rights of the minority. But the Sunnis are not going to be able to return to power in the sense they've had in the past. So, what we'll need is more and more of the Iraqi people helping the intelligence people to ferret out those individuals who are making the bombs and blowing up innocent Iraqis. This is something that the Iraqi people are going to have to join on a wholesale basis or else this is going to continue the way it is today, and delay that time where there can be a Democratic society.

BLITZER: Is there a sense of these insurgents, most of whom are Iraqi Sunnis, how popular they are among Sunnis in general inside Iraq?

COHEN: I don't think we have any idea, in terms of how popular they are. They are pursuing a very unpopular tactic, and that is to blow innocent people up. That can't be a winning strategy for them ultimately. The question is, are they becoming stronger, so that the other Sunni people and the Shia become discouraged about the future and then don't participate in the political process. That's the danger we face, if they continue to go unrestrained and we don't have the kind of help we need from the Iraqi people to find out who these people are, where they are and help track them down before the bombs go off, then there's a real danger we'll lose that campaign.

BLITZER: Let me switch gears and pick your brain from your previous life before. You were the defense secretary during the Clinton administration. You were a Republican senator in the U.S. Senate, from Maine for many years before that in the House of Representatives. What's your sense, as you see this showdown in the -- in the Senate right now. It's going to be resolved one way or another tomorrow morning over a filibuster of these judicial nominees.

COHEN: Well, I think it's distressing for all of us who have served so many years in the United States Senate and House of Representatives. What we're seeing is a break down of civility. We're seeing a poisonous atmosphere. We're seeing partisanship played out in a major way. And frankly, ultimately, if the -- if the so- called nuclear option occurs, I think a very bad term. Very inappropriate to talk...

BLITZER: Well, the Republicans call it the constitutional option.

COHEN: Well, whatever the option is, it should not be referred to as nuclear option, because it diminishes the significance of what we're talking about with nuclear weapons. And they confuse some people of what's taking place. But ultimately, this is going to change the Senate. It's going to make it more like the House of Representatives. It is going to change the checks and balance, as the founders envisioned our system, well into the future, and I think it's a mistake. I hope they can work out a compromise. But I would not want to see a majority rule on judicial nominees or anything else. I think it's important that the Senate be able to slow things down and indeed, even impede them until the political process can work itself out. That this does truly reflect a super majority on key issues like judges and other major issues that come before the Senate.

BLITZER: So, if you were still a Republican senator in the U.S. Senate from Maine right now, you'd vote against Bill Frist?

COHEN: Would vote with John McCain, Olympia Snowe, hopefully Susan Collins and others who are in the middle on this issue, who want to preserve the institution of the Senate. And I think most people don't relate to this. They see inside the ball park, which is not related to their lives. It's very much related to the future course of our system under a checks and balances as envisioned by the founding fathers. So, I would vote to try the compromise about, yes.

BLITZER: As I said at the top of the show, the stakes for all sides, especially American people are enormous. Right now, a lot of people aren't paying attention to what they should be paying attention too. Thanks very much, Mr. Secretary, for joining us.

We'll take another quick break.

When we come back, data debacle. A scheme to steal information on more than 100,000 bank customers is uncovered. And you won't believe who may be behind the scam.

Plus, meeting the Muppets. From hostile protesters yesterday to fuzzy friends today. We'll have an update on the first lady's good will tour through the Middle East.

Also, new action being taken against that pilot who caused the security scare in here Washington.

(COMMERCIAL BREAK)

BLITZER: Welcome back. A data theft involving some of the largest banks in the United States -- is your personal information right now at risk? We'll take a closer look.

First, let's get a quick check on some other stories "Now in the News." The Justice Department says a Pennsylvania man has been arrested for allegedly trying to build and sell a bomb to someone he thought was member of al Qaeda. Instead, it turned out to be an undercover agent. The suspect is set to appear in court today in Houston.

The Federal Aviation Administration is taking action against the pilot of a small plane who caused a major security scare here in Washington earlier in the month. The government has revoked the pilot's license and banned him from flying for at least a year. The FAA is not taking any actions against the plane's passenger who was a student pilot.

The mayor of Spokane, Washington, says he will complete his term in office despite allegations he used his title to meet young men. There have been calls for James West to step down after the accusations surfaced in a local newspaper. West denies he has done anything inappropriate.

First Lady Laura Bush visited the pyramids today and with Egypt's first lady, taped a segment for the local version of "Sesame Street." She also took time for a one-on-one interview with our Suzanne Malveaux, who's traveling with Mrs. Bush in the Middle East. All in all, it was an easier stop than the one the first lady had yesterday in Jerusalem.

Here's Suzanne's report.

(BEGIN VIDEOTAPE)

SUZANNE MALVEAUX, CNN CORRESPONDENT: Sunday, momentary chaos erupted on the first lady's goodwill tour. Her foray into Middle East diplomacy temporarily turned tense as protesters at both Muslim and Jewish holy sites in Jerusalem turned on the first lady.

But Mrs. Bush says reports of the trouble were highly exaggerated. She talked about it with us on her next stop at the Egyptian pyramids.

MALVEAUX: What was going on through your head or through your heart at the moment, when there was that hostility that was expressed towards you?

LAURA BUSH, FIRST LADY: Well, I mean, it was very small moment and I was surrounded by people who were very, very welcoming. It's not the first time. It certainly happens, as you might know, during a campaign all across the United States.

MALVEAUX: On a campaign, the jostling of crowds, tight security and the competitive cameras yes, but not a secondary moving shield, nor what I witnessed at Islam's Dome at the Rock -- an Israeli policeman who had drawn his gun on a young boy who was approaching the first lady. Mrs. Bush said she was aware that visiting these highly sensitive religious sites might lead to protests.

L. BUSH: We know, we knew when we came here, that these are places of great emotion.

MALVEAUX: But, despite it all, Mrs. Bush insisted she never felt in danger.

Did you speak with the president about it? Was he worried for you?

L. BUSH: Sure, after he saw your coverage, he was a little worried.

MALVEAUX: What did he think?

L. BUSH: What did he -- oh, well, I called him to -- he called, actually -- to find out, and I told him that we were fine, that I felt it'd been a little bit built up.

MALVEAUX: I was just feet away from the first lady during much of the time and the pictures were not always clear. This man, who yelled at Mrs. Bush, "your husband kills Muslims," was just one of handful of protesters at the Islamic shrine.

Israeli police were mostly concerned with containing overzealous Israel press. It was at the Western Wall, where about 40 young women pleaded for Mrs. Bush to free a convicted Israeli spy.

L. BUSH: I come to these countries in friendship.

MALVEAUX: Perhaps, but is the White House rethinking the danger involved when the first lady pays a call? As far as Mrs. Bush is concerned, she's not.

L. BUSH: I wouldn't say it's a risk. It's not a risk. You know, this is a -- there's a very important mission behind all of this and it's certainly not taking a risk, myself. I'm perfectly safe.

MALVEAUX: Although it was relatively small number of protesters, because of where they were and who they were targeting, they made a big impact, a typical scenario for a political hot spot in the Middle East,

Suzanne Malveaux, CNN, Cairo.

(END VIDEOTAPE)

BLITZER: Let's take a quick look at some other news making headlines "Around the World."

India's Prime Minister Singh visited a New Delhi hospital after a pair of theater bombings killed one person and injured dozens more. The attacks are under investigation but the theaters were showing a movie that had been condemned by some Siekh religious leaders.

Bolivia protests: thousands of demonstrators marched in Bolivia to demand nationalization of the oil industry. A new law increases taxes on foreign oil companies operating inside Bolivia, but the demonstrators say that law doesn't go far enough.

The great race, hundreds of people from all over the world ran a marathon along part of the 2000-year-old Great Wall of China. The course included more than 3,700 steps. The winner was an American citizen who lives in Shanghai. That's our look "Around the world."

A new report on the side effect of cholesterol-lowering drugs, plus the disturbing story involving your tax dollars. Wait until you hear who's getting the drug Viagra, all paid for by Medicaid, also ahead.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: Knives are checked in the morning to make sure they're all there. They're checked at lunchtime to make sure they're all there. They're checked in the evening, when the guys go back in.

(END VIDEO CLIP)

BLITZER: Prison butchers, an unusual job for men behind bars, but can their new knife-wielding skills help keep them out of trouble? We'll have a report.

And later, Western meltdown, stifling heat creating a new problem for some residents.

(COMMERCIAL BREAK)

BLITZER: A new report out today takes a closer look at the side effects of cholesterol-lowering drugs. The study, released by the American Heart Association, finds side effects are more likely to occur with the drug Crestor than other cholesterol-lowering drugs. These include muscle damage and kidney failure. It's important to note that the side effects were rare and occurred in the first weeks of therapy. AstraZeneca, the company that makes Crestor, issued a statement saying quote, "we strongly disagree with the conclusion of this study." It goes on to say, "AstraZeneca again reaffirms that the safety profile of Crestor is in line with other marketed statins, and is a highly effective cholesterol-lowering therapy."

It's the outrage story of the week. Listen to this -- convicted sex offenders getting Viagra at taxpayer expense. Our Mary Snow is joining us now live from New York with more on what's being done -- Mary.

MARY SNOW, CNN CORRESPONDENT: Well, Wolf, from taxpayers to lawmakers there is shock at this practice. And today, New York's Governor George Pataki says that he ordered the State Division of Patrol -- Parole, that is, to stop the practice. Others are calling on a new federal law.

(BEGIN VIDEOTAPE)

SNOW (voice-over): The question of just who is getting Viagra was a red flag raised by a whistle blower. New York state's controller said it investigated and found taxpayers, through Medicaid, were paying for Viagra for 198 level three sex offenders classified by the courts as the most likely to reoffend. Public to politicians, there's strong reaction.

UNIDENTIFIED MALE: I just think that's outrageous.

UNIDENTIFIED FEMALE: Those particular people are getting Viagra? May I ask why?

SNOW: The question is echoed by Laura Ahearn, the head of Parents for Megan's Law, a law that makes information about sex offender available to the public.

LAURA AHEARN, PARENTS FOR MEGAN'S LAW: It's a complete outrage. It's like giving a loaded gun to a murderer.

SNOW: Congressman Joe Barton in a statement said, "It's hard to imagine a more perverse misuse of the taxpayer's money and I'm going to do everything in my power to stop it. New York's comptroller says the policy is the result of unintended consequences from of a 1998 Health and Human Services directive to reimburse recipient for Viagra. And that he says broaden's the problem.

UNIDENTIFIED MALE: This problem is not a New York problem, it's a national problem. This -- this directive was applied to every state.

SNOW: The question is are other states also paying for Viagra for sex offenders through Medicaid. The Centers for Medicare and Medicaid Service says it is unclear. But says Medicaid should not pay for the cost of erectile dysfunction drugs for sex offenders. It cited confusion over the 1998 directive. And said, it will be putting out further guidance to the states.

New York Senator Charles Schumer is calling for federal legislation.

SEN. CHUCK SCHUMER (D), NEW YORK: It's clear here that the left hand doesn't know what the right hand is doing. In a large thing like government, that can happen. But now, they ought to do a thorough check and see what kind of medication is Medicaid giving out to people who shouldn't have them for one reason or another?

(END VIDEOTAPE)

SNOW: And the Centers for Medicare and Medicare Services points out, that states already have the power to determine if a particular drug is medically not appropriate for a certain patient or group of patients -- Wolf.

BLITZER: Mary Snow reporting for us. Thanks, Mary, very much.

Coming up at the top of the hour, "LOU DOBBS TONIGHT." Lou's standing by in New York with a little preview. What do you got, Lou?

LOU DOBBS, HOST, LOU DOBBS REPORTS: Wolf, thank you.

At 6:00 p.m. Eastern tonight, we'll be reporting on the bitter debate over filibusters and judicial appointments. Senators preparing for what will be an all night debate. A critical vote nearing.

Is an embryo human life? Should federal dollars pay embryonic stem cell research? The top congressman on both sides of the issue will be our special guest tonight.

And the Reverend Al Sharpton today demanded an apology from Mexico's president, Vicente Fox for his offensive comments about blacks in America. Reverend Sharpton is our guest tonight live from Mexico City. All that and a great deal more at the top of the hour. Please join us.

Now back to you, Wolf.

BLITZER: Thanks very much, Lou. We'll be watching.

We'll take a quick break. When we come back, an amazing story. Listen to this -- prison butchers. Why are convicted felons getting access to knives in a medium secure prison?

And later record heat after record snow falls, the consequences of extreme weather. That's coming up as well.

(COMMERCIAL BREAK)

BLITZER: Bad news potentially for hundreds of thousands of customers of two major banks in the United States. Their personal financial records may be in the hands of crooks right now. Our Chris Huntington is standing by with the story. He is in New York -- Chris.

CHRIS HUNTINGTON, CNN CORRESPONDENT: Well, Wolf, this case comes at a time of growing concern about identity theft. What is particularly disturbing about this case based here in New Jersey, is that authorities believe that high level employees at some of the nation's biggest banks were helping criminals traffic in personal information.

(BEGIN VIDEOTAPE)

HUNTINGTON (voice-over): The U.S. Treasury is calling it the biggest breach of bank security in U.S. history. Hackensack, New Jersey Police cracked the case following up on a residential burglary. They say this man, Orazin "Ozzy" Lembo, masterminded a scheme to illegally sell personal information and bank account numbers of at least 676,000 people to a collection agency. Authorities say Lembo had help, highly placed insiders at Bank of America, Wachovia, PNC Financial, Commerce Bank and the New Jersey Department of Labor.

Hackensack police Chief Ken Zisa says Lembo called his operation DRL Associates, and ran it from his residence at this condominium complex. Siza says authorities are still learning about Lembo's operation and his intentions.

CHIEF KEN ZISA, HACKENSACK POLICE: Accounts were being looked at, and certainly that is a great cause for concern, as well as being unlawful. But we also have a concern as to how that information would ultimately be used. Certainly, identity theft is of great concern as it relates to this case.

HUNTINGTON: According to Zisa, the scam worked like this, Lembo would get names and Social Security Numbers from a collection agency who wanted to find out bank account information. Lembo's associates such as this Commerce Bank manager and his assistant manager, would cross-check the names against bank account information. They are among 10 people arrested in the operation. Lembo would pay the operatives $10 per match, but would sell the information back to the collection agency for as much as $150.

Authorities believe Lembo operated the scam for nearly four years and may have made as much as $4 million. Commerce Bank could not be reached for comment, Deiva (ph), Wachovia, and PNC have notified customers and are cooperating with authorities.

(END VIDEOTAPE)

HUNTINGTON: Now, Lembo nor his attorney could be reached this afternoon. Authorities have charged Lembo with nine crimes, including racketeering. If he's convicted on all of those crimes, he faces a cumulative total of 130 years in prison and more than a million dollars in fines. One other footnote, Lembo pleaded guilty in 1998 to a similar crime also here in New Jersey. The crime then was commercial bribery. Authorities tell us that this was a similar scheme that he was trying on a smaller scale back in the late '90s -- Wolf.

BLITZER: And if you have money in those banks, you may want to check with those banks to determine what to do. Chris Huntington is with us in Hackensack, New Jersey. Chris, thanks very much.

Now, this next question, would you hand a butcher knife to a convicted murderer? They've been doing that for years at a prison in Maryland.

CNN's Brian Todd has the story.

(BEGIN VIDEOTAPE)

BRIAN TODD, CNN CORRESPONDENT (voice-over): Watching them chop meat, pack down hamburger patties or hang sausage, the obvious first impression, this is your standard butcher shop.

Look a little closer, you notice the knives are tethered to the tables. Look outside, you'll see barbed wire and guard towers. This shop is on the grounds of the medium security state prison in Hagerstown, Maryland. These butchers are convicted felons.

FRED WILLIAMSON, INMATE BUTCHER: Oh, it's beautiful. I mean, it's the opportunity of a lifetime for me.

TODD: Fred Williamson has been behind bars for nine years, convicted of attempted murder and robbery with a deadly weapon, a knife. Mark Grant's in for murder. For Grant, Williamson and all these men, wielding sharp knives doesn't tempt them to violence. Quite the opposite.

MARK GRANT, INMATE BUTCHER: I never had a job ever. You know, to me, just, I like it. I like it.

TODD: Seventy-five hardened criminals work here every day, with free access to knives that weren't even tied down until a few years ago. There are no armed guards inside the plant. Their supervisor says he's never even felt threatened here.

MICHAEL FAGER, MEAT PLANT MANAGER: Now, we have very strict security guidelines. Knives are checked in the morning to make sure they're all there. They're checked in at lunchtime to make sure they're all there. They're checked in in the evening when the guys go back in.

TODD: Security's not a problem, he says, because these jobs are coveted. With a waiting list of 300, they only hire the best behaved inmates.

Williamson explains the attraction.

WILLIAMSON: And all we resorted to was illegal means. You know what I'm saying? Which resulted to be coming back to prison. And so I wanted to -- I wanted to get a career, skill, and a career trade that would help me.

TODD (on camera): And it certainly helps the state. For 13 years, this plant has been part of a very successful industry inside the Maryland prison system. This shop alone had more than $5 million in sales last year.

(voice-over): The meat's bought only by state institutions like colleges and hospitals. By law, these plants can't compete with private meat packers. Some of the profit is used for salaries, equipment and training for these men; some of it goes to other state programs.

Prisoner advocate groups complain that these jobs, while voluntary, are the equivalent of slave labor. State officials say these inmates make $160 a month, which is OK with everyone we talked to.

GRANT: The pay could be better. You know, I'm not complaining, but the pay could be better.

TODD: But Mark Grant and his co-workers believe they're building something here. State officials say among these men, the recidivism rate, people sent back to jail after their release, is about half that of the general prison population in Maryland.

Fred Williamson expects to get out by January of 2007, stay out, and stay in this line of work.

WILLIAMSON: There's a guy that tells me now he has a job waiting for me in Park Heights in Baltimore. All I have to do is get there.

TODD: Brian Todd, CNN, Hagerstown, Maryland.

(END VIDEOTAPE)

BLITZER: And when we come back, temperatures so hot out West, even this bear -- look at this -- a bear couldn't resist taking a dip in a pool, a swimming pool in a backyard. We'll get to that. First, though, CNN's Kyra Phillips has our special anniversary series, CNN "Then & Now." Today, she profiles Douglas Wilder.

(BEGIN VIDEOTAPE)

KYRA PHILLIPS, CNN CORRESPONDENT (voice-over): Lawrence Douglas Wilder has earned a reputation exploring unchartered territory, politically as well as racially. He graduated from the private all- black Virginia Union University, after being turned away from all- white schools in his native Virginia.

Doug Wilder went on to become a celebrated criminal lawyer, state senator, lieutenant governor, and in 1990, the first black governor ever elected in the U.S.

GOV. DOUGLAS WILDER (D), VIRGINIA: The people of Virginia have spoken tonight. PHILLIPS: To demonstrate distaste for his state's history of slavery, Wilder chose to take his oath of office outside Virginia's Capitol, a building that had served as the Confederate Capitol during the Civil War.

Now, at 74, he's beginning a new phase of public service. Last November, following a historic change in the city charter, he became the first mayor elected by the people, rather than the council, in his hometown, Richmond.

WILDER: What is it that we are to do and who are you there for? You're there to represent the people.

PHILLIPS: Today, Mayor Doug Wilder is a common sight on the streets of Richmond, and Virginia Commonwealth University, where he teaches political science.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

BLITZER: Summer is still officially weeks away, but millions of people in the Western U.S. are already suffering through sizzling temperatures, and what might seem to be an unusual consequence -- flooding. First, the heat.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: It has got to be over 100 degrees in my room right now. I live on the fourth floor. It's like a sauna.

BLITZER (voice-over): Phoenix, Arizona. Forecast high today, 109 degrees. And residents of this apartment building are facing it without air conditioning.

UNIDENTIFIED FEMALE: How hot is your apartment?

UNIDENTIFIED MALE: Hard telling. It's just stifling, though, even with the ceiling fan on. It's bad.

BLITZER: And it's not just Phoenix. People throughout the West are sweating out temperatures in the 80s, 90s and triple digits. Apparently unbearable for this bear, caught on tape cooling off in the pool of a Southern California home.

Hot, yes, but not unheard of.

JACQUI JERAS, CNN METEOROLOGIST: It's not that unusual to see the triple digits this early in the season. Phoenix, for example, usually hits 100 by May 5th, and we didn't hit it until just a week ago. However, what is a little bit more unusual is to see it this widespread, covering so much real estate.

BLITZER: In the Rockies, warm weather is stealing the spring thaw; combining with an above average snow pack to cause flooding in parts of western Colorado. UNIDENTIFIED FEMALE: I have seen people with water up to here, to their -- above their waist.

UNIDENTIFIED MALE: They said it's going to be worse. I think it is going to be worse, because there's still a lot more snow up there.

BLITZER: Some residents are bracing with sandbags. And it's not just the Rockies facing a washout.

JERAS: We got flood watches across much of the Sierras, across parts of the Rockies, into the Wasatch and the Uinter ranges, so many of the mountain chains across the West are going to have to worry about this over the next several days. The heat is going to continue at least until the middle to the latter part of the week. So this will be a concern at least until Friday.

(END VIDEOTAPE)

BLITZER: Three people drowned over the weekend in Colorado River; two of them on rafting trips. So far, though, authorities have not said the deaths were the result of high water.

That's it for me. I'm Wolf Blitzer in Washington. "LOU DOBBS TONIGHT" starts right now, Lou standing by in New York with more -- Lou.

LOU DOBBS, HOST, "LOU DOBBS TONIGHT": Wolf, thank you very much.

END

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