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Peter Jennings Succumbs to Cancer; Man Who Once Ran Oil-for- Food Program Says He's Being Made Fall Guy in International Scandal

Aired August 08, 2005 - 10:30   ET

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

DARYN KAGAN, CNN ANCHOR, CNN LIVE TODAY: This just in to CNN. News out of Columbus, Ohio. The site of those five-month series of highway shootings in 2003 and 2004. The attacks, which were apparently random, left one woman dead and central Ohio drivers on edge. Well, according to the Associated Press, attorneys now say 29-year-old Charles McCoy, Jr. will drop his insanity defense and plead guilty to the shootings. A jury dead locked in an earlier trial. He's on medication for paranoid schizophrenia.
And now take a look at what else is happening "Now in the News": NASA says it will aim for a pre-dawn landing tomorrow of the Space Shuttle Discovery. Low cloud cover in Florida forced the space agency to postpone two attempts earlier this morning. NASA has activated two alternative landing sites, one in California and one in New Mexico.

Seven men accused of links to the failed July 21st bombings in London will remain in custody. That group includes three men accused of planting the bomb that failed to detonate. A fourth man is accused of carrying a bomb that was later found abandoned in northwest London.

Iran has restarted a nuclear facility but maintains it is not intended for a nuclear weapons program as the U.S. has feared. Tehran says the process is instead designed to produce nuclear fuel. Iran had suspended all nuclear work under international pressure and said the resumption is taking place under the scrutiny of the United Nations nuclear watchdog, the IAEA.

The price of crude oil has hit another record high. Earlier today those prices surged to almost $63 a barrel. Concerns over summer supplies and Middle East uncertainty are being blamed. Two years ago gas prices in the U.S. hit their seasonal peak in late August.

Poised, smooth and with a journalistic knowledge at deep as his passion. Peter Jennings appeared in American living rooms more than 40 years, and for many, his death is more than just a loss of a familiar and often comforting presence. It also pointedly ushers in the end of an era. Howard Kurtz is a media critic for "The Washington Post" also serves as the host of CNN's "Reliable Sources."

Howard, good morning.

HOWARD KURTZ, "THE WASHINGTON POST": Good morning, Daryn.

KAGAN: Thanks for joining us this morning with your personal insights into the man had you an opportunity to interview and talk with a number of times. KURTZ: Well, I remember riding back, just last fall, on a plane from New York to Washington with him, when Peter Jennings was with his family. And we were talking and he was asking about the gossip at CBS and the Dan Rather controversy at the time. And I asked him why he didn't do more interviews, not just with me, but with other reporters.

He told me that this was very deliberate. He didn't feel that comfortable talking about himself. Here was a guy who was eloquent, could stay on the air hours, during the 9/11 tragedy or during the war in Iraq, but he was also rather self-effacing. And anybody who had any contact with him had to regard him as not just a passionate journalist but a gentleman.

KAGAN: Kind of a self-made man, from -- a lot made of that he dropped out of high school and yet he came across as very educated and a certain elite feeling about him?

KURTZ: I guess having dropped out of high school, he got his education around the world during his years as a foreign correspondent. He always tried to keep the world in "World News Tonight", the broadcasting anchor for so many years. And he was a Canadian who came to love America, finally got his American citizenship after the 9/11, 2001 attacks. So he, you know -- Dan Rather, Tom Brokaw and Peter Jennings all brought different strengths and characteristics and quirks to the job.

But Jennings never seemed ill-at ease and he always seemed able to make us comfortable. Even when he was interviewing children, ABC this morning, showing him talking to young kids after the 9/11 attacks; he was able to communicate with them as well as with presidents and prime ministers.

KAGAN: You know it is interesting that you also bring up Tom Brokaw and Dan Rather. Because this is such a fascinating time now in television news and network news, truly the end of an era. In the span of less than a year, all three major network anchors step away for different reasons.

KURTZ: Something I would never have predicted. Now Brokaw's retirement was planned well in advance. NBC was able to made a pretty smooth transition to Brian Williams in the anchor chair. Dan Rather, of course, leaving the chair under pressure at CBS about a year before he planned, because of his botched handling of that story about President Bush's National Guard service.

But Jennings, people at ABC, before he suddenly told the world just last April that he had lung cancer, and things did not look good, I think ABC expected him to be in that coveted seat several more years. There was no heir apparent, although they have a deep and talented bench at "ABC News", no heir apparent who was promoted within the network. ABC, I think, you know, still grappling with what does the future look like after Peter Jennings?

KAGAN: Well, you see that at all three network news departments. What does the future hold? A time when there's not maybe an established star to fill in those seats. But also the way technology is changing, the way people are getting their news. That network newscast, the evening newscast, is not of the importance it used to be.

KURTZ: Speaking of changing technology, I spent some time with Peter Jennings at the Democratic convention last year, when he was anchoring his first digital broadcast, which was available to people on AOL and on cell phones. He didn't know whether 20 or 200 people were watching, but he had great enthusiasm for it. He thought it was rather cool that the show was opening with a Jimi Hendrix song.

To your point, Daryn, these anchors are more than the people who give you the news at 6:30, which obviously, those audiences have been declining in an era of online and cable and talk radio competition, but they are the face of what will remain the biggest broadcast news organizations.

And even though they probably are going to be somewhat diminished compared to the days of Walter Cronkite, Huntley & Brinkley, they are still very, very important. On the other hand there are some people saying, look, "NBC Nightly News" ratings did not go down much, if at all, after the transition from Brokaw, who NBC thought was irreplaceable, to Brian Williams.

So that maybe these people are not quite at irreplaceable as we'd like to think. But emotionally, not only did Peter Jennings touch so many viewers in and so many kinds stories over the decades, but was truly a beloved figure at ABC News, where he could be a tough taskmaster, but people just have the deepest affection for him. And I know, personally, are having a very hard time grappling with his loss.

KAGAN: Howard Kurtz, thank you for your insights and information this morning. Appreciate that.

Returning now to Iraq. Insurgents launched another deadly round of attacks over the weekend killing at least 19 people. The attacks were scattered across the country from Baghdad to areas north, south and west of the capital. In Tikrit a fuel tanker exploded near police headquarters. Two officers were killed in the blast.

In the city of Samawa, in southern Iraq, tensions are still high after street protests turned violent. One person was killed when protesters battled police there. The demonstrations were -- the demonstrators were venting their anger over poor government services and unemployment benefits.

The latest violence comes as Iraqi leaders scramble to draft a new constitution by next Monday's deadline. Marathon negotiations got under way yesterday in Baghdad, but a blinding sandstorm has postponed today's meeting until tomorrow.

The man who once ran the United Nations oil-for-food program says he is being made the fall guy in an international scandal. Benon Sevan faces new accusations today of profiting from illegal oil deals in Iraq. Yesterday he resigned from the U.N.

Our Senior United Nations Producer Liz Neisloss joins us now from the U.N.

Liz, Hello.

LIZ NEISLOSS, CNN SR. U.N. PRODUCER: Hello, Daryn. Well, in a few hours we will get more details when there is a press conference by the head of the U.N. appointed investigation.

But what we know so far is that the former head of the oil-for- food program is expected to be accused of taking illegal payments from an Egyptian trader who got Iraqi oil contracts.

Now, we don't know yet exactly how much money. We'll hear more about that later, but we also expect to hear that Benon Sevan has not been cooperating with this U.N. appointed investigation. Benon Sevan vigorously denies both charges, you said he feels he's a fall guy. He says he's being made a scapegoat for all the ills of the program.

The report is also expected to focus on one other individual, a man named Alexander Yakovlev, a procurement officer for the U.N., but the main finding is regarding Benon Sevan.

Later today a gentlemen named Paul Volcker, who is the former head of the U.S. Federal Reserve, is expected to bring out his report which will detail exactly what Benon Sevan did. Now, Volcker spent months and something like $30 million looking into the oil-for-food program. This is a program that was set up in order to help feed and provide medicine for the Iraqi people, while they were under sanctions, after the first Gulf War.

But a lot of things happened. Saddam Hussein is seen as having gained billions of dollars in illegally acquired money and Benon Sevan is the first individual from the U.N. who will clearly be targeted in this program.

The latest twist, though, as you mentioned, Daryn, is that Sevan has resigned, and he did so on Sunday. It is a very interesting thing, because Sevan had actually retired from the program. He was being kept on a dollar a year in order to cooperate with the Volcker program.

It's really not clear what impact this resignation will have. We know that Sevan right now is in Cypress. We do not know when or if he'll return -- Daryn.

KAGAN: All right. You'll be watching it for us from the U.N. Liz Neisloss, thank you.

President Bush heads to a solar power lab in New Mexico this morning. He's going there to sign a landmark energy plan. The legislation passed Congress after a four-year battle. Our Dana Bash joins us with more now from the White House.

Dana, good morning.

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Daryn.

When you talk about energy reform, the thing that Americans are probably most interested in, something you report add few minutes ago, that crude oil prices, gas prices, are at a new high. Well that is something that this 1700-plus page legislation is not going to address, at least not immediately.

Everybody agrees on that, even the president, but supporters, like the president, insist that this legislation is about encouraging long-term reform by promoting cleaner and alternative energy. Let's take a look at some of the key points.

First of all, the crux of the legislation is $14.5 billion in tax breaks for energy companies. Now opponents claim that these are too heavily weighted for big oil and gas companies. Not enough for alternative energy, like biofuel, though there is some benefit in there for those kinds of companies.

Also, there will be new efficiency standards for commercial appliances and new standards for the electric transmission grid. The hope there is preventing blackouts like the one that crippled the Northeast just two years ago.

Also, Daryn, consumers will be able to benefit from this legislation with tax credits if they buy gas-electric cars, or make energy improvements to their homes. Also something that will affect everybody, that is Daylight Saving Time is going to be extended by one month. A hope there is that it will conserve energy.

Now, this legislation was stalled the president's entire first term. The main reason President Bush is going to be able to sign this legislation later today is because there is something missing from it. And that is something Mr. Bush campaigned on not once, but twice, drilling for oil in the Alaskan wildlife refuge. That is something that Republican decided to take out of this legislation, but it is not dead. They are going to put it into another piece of legislation in the fall, that will be immune from a filibuster. They hope that will allow this finally to pass.

Now, Daryn, a lot of Democrats voted against this, because they said this legislation does not do enough to keep foreign oil, keep the U.S. from being so dependent on foreign oil. But certainly this is a legislative victory, Daryn, that the administration will certainly be touting, because this comes at a time when the president's own approval ratings are sagging and also Americans feelings about the economy and also Iraq, certainly at quite a low.

KAGAN: So, Dana, the president heads to Albuquerque, New Mexico for the bill-signing ceremony. As he does, we're receiving word that he'll make comments about Peter Jennings?

BASH: That's right. We're told by the White House that before Mr. Bush leaves Texas he is going to make a comment, pay tribute to Peter Jennings, just as we have heard from people from all over, all walks of life this morning. Mr. Bush will add his tribute, his praise for Peter Jennings, and the life that he led and what he did, essentially for Americans, and for journalism. He'll do that before he leaves Texas, before he goes to Albuquerque, Daryn.

KAGAN: Dana Bash live from the White House. Thank you.

News in to CNN, the political world in New York State seems to be heating up. The district attorney for Westchester County, Jeanine Pirro is announcing that she will run for the Senate seat that is currently held by Hillary Clinton.

She will run as a Republican, and in her statement today, Jeanine Pirro saying that she is going to run because she believes that New York State deserves, these her words, deserves a senator who will give all -- all of her assets to New York for a full term, and will not be missing votes to go after presidential primaries. With the insinuation there that Hillary Clinton has plans to run for president.

No comment today from Senator Clinton. A little interesting note, as well, Pirro was re-elected to the district attorney office in 2001, while her husband was in federal prison serving time on tax fraud charges. Things getting interesting in New York State.

Things still staying interesting around here as well. Still to come on CNN LIVE TODAY, if you've had to fly this summer, chances are you've also had to wait at the gate. We'll tell you about flight delay statistics, coming up next.

(COMMERCIAL BREAK)

KAGAN: We want to show you a breaking news story we're following out of Southern California. This n overturned fuel truck. It is on the Long Beach Freeway right at the part where it crosses the San Diego Freeway, the 405.

We also understand, underneath this truck, you can see, there is another vehicle stuck underneath it. So the southbound freeway to Long Beach, closed at this time. These pictures, information coming to us from our affiliate in KTTV. We'll continue to follow that situation out of Southern California. Right in the middle of a busy commute time. We're back after this.

(COMMERCIAL BREAK)

SUSAN LISOVICZ, CNN FINANCIAL CORRESPONDENT: I'm Susan Lisovicz at the New York Stock Exchange, where an early rally is fizzling out, weighted down by sharply higher oil pries.

Right now the Dow industrials hanging on, up 2 points, well off their highs of the session. The Nasdaq has actually gone into the red, down 4 points. Ordinarily, a quarter of a percent. Crude oil prices are above $63 a barrel for the first time ever. Traders are jittery about security threats against U.S. facilities in Saudi Arabia, the world's biggest petroleum producing country.

On a different note, if you've flown this summer, chances are that you've also waited. The "New York Times" reports that flight departure delays at their worst level in five years. The report says recent Transportation Department statistics show nearly one flight in five has left the gate at least 15 minutes late this year. Airlines are trying to make up for lost time by flying faster, but that burns more fuel, and money for the industry.

Meanwhile, "USA Today" reports the industry is expected to lose another $5 billion this year. A big part of the problem, several airlines paid more for fuel last quarter than they did for the workers they employ.

And that is the latest from Wall Street. I'm afraid it's not very good news this morning. Daryn, back to you.

KAGAN: No, with the high cost of fuel, makes it particularly difficult to cover this next story. Susan, thank you.

Want to go back to our breaking news story out of southern California, a fuel tanker truck, overturned on its side on the Long Beach freeway, as you can see, spilling fuel. There is another vehicle involved in this situation. Let's bring in Ricardo Quintero, he is the public affairs officer for the California Highway Patrol.

Good morning.

RICARDO QUINTERO, CAL HIGHWAY PATROL: Good morning, Daryn. Good morning everybody.

You know, it's not good situation out there that we have right now. This overturned tanker trailer there, approximately loaded with about 3,600 gallons of diesel fuel. So it is not actually gasoline, it's diesel fuel. And it is where the 710, both directions north and south, meet up with the 405 freeway, heading south. So it is a pretty busy intersection right around that area.

KAGAN: And for folks not as familiar with southern California, talking just southwest of downtown Los Angeles?

QUINTERO: Exactly. Heading out towards the Long Beach area. This is the general Long Beach area. And we got this call about 7:00 a.m., our time out here. So it has been working for just under an hour. We have emergency crews are on scene, we have the fire department on scene. And as you can see that tanker trailer is just gushing that diesel fuel out. They're trying to assess the situation and figure how best they can control it.

KAGAN: We also saw another vehicle, that it seemed to be squished underneath the truck?

QUINTERO: Right. Unfortunately, I don't know exactly the cause of accident. But from what it looks like, it looks like, these two vehicles were coming from different transitionals; they meet up with that one transitional. That's possibly what could have happened there. But it is unknown, exactly what the cause of this accident is at this time.

KAGAN: Do we know if anybody has been hurt so far?

QUINTERO: Well, the fire department is on scene, but we don't have any reports of any injuries just yet. Once they assess the whole situation and figure what it is they're going to do, they'll make sure, and determine who, if anybody, was injured, minor injuries or serious injury, if at all.

KAGAN: Also, 7:51, your time, this is, like, crunch part of commuter hour. These are two regularly very busy freeways.

QUINTERO: Yes, you're right. Unfortunately, it is. It is rush- hour commute anywhere from 5 to 9 o'clock, and right now it is at the heart of rush hour. And those are two major freeways, Long Beach Freeway and the 405 San Diego Freeway.

KAGAN: All right. We'll be watching. Ricardo Quintero, with the CHP in southern California, thank you.

And we'll take a break. More news after this.

(COMMERCIAL BREAK)

(WEATHER FORECAST)

KAGAN: Question for expecting moms, can you really tell if a pregnant woman is expecting a boy or girl just by what she's craving? We'll exploring some commonly held beliefs and myths about pregnancy nutrition in today's "Daily Dose."

Plus, it is a moving day like no other, and one which some hope will finally bring peace to the Middle East. We'll show you how some Israeli settlers are preparing for their nation's withdrawal from Gaza.

The second hour of CNN LIVE TODAY will begin after a quick break.

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