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American Morning
Fires In Texas, Oklahoma Claim Five Lives; Post-Election Violence Spikes in Iraq; Report: 9/11 Loans Fell Into Wrong Hands
Aired December 29, 2005 - 06:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR, AMERICAN MORNING: Good morning to you on at Thursday morning. I'm Miles O'Brien.
CAROL COSTELLO, CNN ANCHOR, AMERICAN MORNING: And I'm Carol Costello. Thank you for waking up with us. Soledad has the day off.
O'BRIEN: Fire teams get ready for more trouble in Texas and Oklahoma today. More than a 100 homes now destroyed, five dead, in those wildfires. We'll have an update. Northern California, the opposite problem, too much water. Rivers are brimming after relentless storms. More rain on the way.
A suicide attack at the main gate to Iraq's interior ministry, just hours ago. Four people killed, eight hurt. We're live in Baghdad.
COSTELLO: Billions of dollars in loans handed out to small businesses after 9/11 but many of those companies may not have been affected by the attacks at all.
And will New York City throw the famed Harlem Boys Choir out on to the streets? We'll take a look at a last-minute offer to save an institution.
O'BRIEN: We begin with those wildfires. Extensive damage and now a growing death toll, no relief in sight. Five are dead in Oklahoma and Texas. More than a 100 homes destroyed. Higher humidity and decreased winds help firefighters battle those fires on Wednesday, but several are still burning. And strong winds are expected today, even through the weekend.
And 30,000 acres have burned in Oklahoma. In Texas, perhaps the most devastated community, is Cross Plains, 150 miles southwest of Dallas. Two died there. More than 75 homes destroyed in that state. In the next hour we'll talk to a young man who saved his home and several others on his block.
From fire to rain now, in California the weather is turning nasty, even dangerous. Flood warnings are out as rivers reach their highest levels in seven years. And more heavy rain is on the way. Our Jen Rogers is in San Francisco with more.
(BEGIN VIDEOTAPE)
JEN ROGERS, CNN CORRESPONDENT (on camera): The West Coast is bracing for a series of storms lined up in the Pacific. After a relatively dry day yesterday, the next front could be moving in as early as tonight, with the most intense storms still to come.
(Voice over): Now, the problem here is that after days of rain the ground is already saturated raising the concerns for flooding and mudslides. High winds are also expected, which officials say could lead to downed power lines and uprooted trees.
North of here, in the Sierras, it's snow not rain that could wreak havoc with this New Year's weekend. Colder air should be moving in Friday and Saturday. And snow could then be falling over the lower passes making the ride home after the holidays a slow one.
The upside for skiers is fresh snow and a solid snow pack. One that will likely be added to as more storms are forecast through all of next week. Jen Rogers, CNN, San Francisco.
(END VIDEOTAPE)
O'BRIEN: Let's get some more on the forecast now, Jacqui Jeras at the CNN Weather Center.
(WEATHER FORECAST)
COSTELLO: Several developments to tell you about, out of Iraq this morning. A suicide car bombing in Baghdad kills four people. Three of them Iraqi police officers, plus growing criticism of the mid-December elections. Jennifer Eccleston joins us life from Baghdad now to tell us more.
Jennifer, first about the latest violence.
JENNIFER ECCLESTON, CNN INT'L. CORRESPONDENT: That's right, Carol. Post-election violence continues to escalate in Baghdad. As you mentioned, a suicide bomber detonated his explosive belt at a checkpoint leading to the controversial ministry of the interior.
Now three police guards who check vehicles and individuals who are going in and out of that ministry died in the attack. One civilian is also dead. Eight others, including five policemen, were wounded in this morning's attack.
Now, the ministry of interior has angered the Sunni community throughout this country. They accuse it of launching deadly attacks on the Sunni community, vis-a-vis it's military. As you mentioned, there is also a great deal of election controversy. That continues this day. A protest in the ethnically divided and oil-rich city of Kirkuk. Ethnic Turkmen and Arab residents denounced preliminary results which give their rivals, the Kurds, a possible second-place showing in seats for the new parliament.
Now, the Kurds want Kirkuk as part of their autonomous region. The future of that contested city is one of the most emotionally charged issues in Iraq. Both all the Kurds, Arabs, and the Turkmen in that city, they all claim historical rights to the city, which is north of Baghdad.
The issue is expected to be a part of the referendum after the government is formed. And as you know, we are still awaiting final results from that historic December 15 vote -- Carol.
COSTELLO: Yes, and hopefully they'll come next week. Jennifer Eccleston, live in Baghdad this morning. Thanks.
O'BRIEN: From Pakistan, a shocking story. A man described as completely unrepentant calmly recounting of how he slit the throats of his three little girls and a 25-year-old stepdaughter. He says he did to restore the family's honor. Killing the older girl because he thought she had committed adultery; and the other girls, aged four to eight, to prevent them from doing the same later in life.
The man's wife tells authorities she looked on helplessly as the girls were killed. Apparently there are hundreds of these so-called honor killings of Pakistani women and girls each year.
You can find out a lot more about this story by visiting CNN.com.
COSTELLO: Oh!
O'BRIEN: Washington waking up to the news that money has ended up in the wrong hands; money that was supposed to be special 9/11 loans. There are questions about why banks loaned money to businesses, from Dunkin' Donuts to a Nevada tanning salon, when they were supposed to be helping out businesses hurt by the terror attacks.
AMERICAN MORNING's Bob Franken is live in Washington to sort this out for us.
Good morning, Bob.
BOB FRANKEN, CNN NATIONAL CORRESPONDENT: Good morning, Miles.
And we're talking about a program administered by the Small Business Administration, called the Supplementary Terrorist Activity Relief Fund. That's known as STAR. It was money, as you pointed out, that was supposed to go to businesses that were affected by the 9/11 attacks.
But what the finding, as reported by the Associated Press, from the inspector general, the SBA points out, is that a lot of this money was not properly vetted. That is to say, the lending institutions, who by the way make a profit on this, did not check to see if the recipients were qualified. It meant that a lot of businesses that might be questionable got the money, when a number of them, near the 9/11 attack sites did not get the loans that they were talking about.
We're talking about people who got loans that included, among others, an organization in Utah, a dog boutique. And in South Dakota, a radio station, in the Virgin Islands a perfume shop. The aforementioned Dunkin' Donuts shops, there were a lot of them around the country, as a matter of fact, who got these loans, Miles. And we'll have to just speculate on the rationale for that.
As for what Congress can do, the Congress is going to investigate this to find out if there was something that was wrong that perhaps requires some investigation by prosecutors and the like, or whether Congress has to change legislation.
The administer of the Small Business Administration says that there is no proof in this IG report that people had gotten bad loans, just that they weren't properly vetted. That there wasn't a proper investigation to see if they should have gotten the loans -- Miles.
O'BRIEN: Bob Franken, in Washington, thank you very much.
Carol?
COSTELLO: Do not be surprised if someone in the airport, airport security that is, wants to chat with you, look into your eyes. And they'll do that the next time you fly. It's part of a new approach that is supposed to help pick out terrorists. Brian Todd has more for you.
(BEGIN VIDEOTAPE)
BRIAN TODD, CNN CORRESPONDENT (on camera): TSA officials tell CNN they are putting new procedures in place to screen passenger's behavior. They say specially trained screeners will focus on signs of stress, fear, evasiveness, any type of behavior that might signal a potential terrorist threat.
Now, opponents warn this could lead to racial profiling and mistakes like possibly singling out innocent passengers who are just stressed out over flying. TSA officials say they will be very careful and focus only on behavior not ethnic appearance.
The program is already in place in five U.S. airports, with many more to come. Brian Todd, CNN, at Reagan National Airport.
(END VIDEOTAPE)
COSTELLO: And coming up in the next half hour, we'll talk to a former air marshal about what security is going to be looking for and how you might be approached the next time you fly.
O'BRIEN: Well, how's this for a strange coincidence? Remember that Alaska airlines jet we told you about, the one yesterday, it had to make that emergency landing because it had a hole in its side. Well, get this. On Wednesday, their was that potential pressurization problem on another flight 536, this was a different airline, but the same flight number as the Air Alaska flight. Luckily, it turned out not to be a big deal on that Frontier thing, just an indicator light.
COSTELLO: Oh.
O'BRIEN: Coincidence.
COSTELLO: Creepy though, isn't it?
O'BRIEN: Yeah, we hope it's coincidence. Yes.
COSTELLO: Yeah, we do. Unless you never want to fly on that number flight again. O'BRIEN: There you go.
COSTELLO: Coming up on AMERICAN MORNING, a new development in that New Orleans police shooting. The brother of the man killed might have an explanation for why this man was waving a knife at police.
O'BRIEN: Also, the multi-billion dollar accounting scandal at HealthSouth. A jury let former CEO Richard Scrushy off the hook. His old company is not being as kind.
COSTELLO: And later the Harlem Boys Choir facing eviction. Will the New York City institution have to find a new home? That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
COSTELLO: It's 6:13 Eastern, time to take a look at the headlines now. There has been a suicide bombing at checkpoint in the West Bank. About two hours ago the Israeli military confirmed the bomber killed at least one person and wounded nine others. The attack comes one day after Israeli war planes struck suspected militant sites in Gaza.
In 15 minutes Guy Raz will join us live from Jerusalem. He'll have more on this latest attack.
The wife of the man brutally beaten by a mob of teenagers is urging parents to talk to their children to stop the violence. Her husband was dragged from his car and beaten from within of his life Monday, all because he apparently honked the horn at this group of kids to get them out of the street.
So far there have been no arrests. The victim, 50-year-old Samuel McClain, is getting better. He is now in stable condition.
New details this morning in the New Orleans police shooting. You certainly remember this video; Anthony Hayes is seen waving a three- inch knife at police. He was later shot and killed by officers, who say he lunged at them.
Well, now, Hayes' brother tells CNN that Hayes was schizophrenic and on medication. Police officials say it was not apparent to the officers that he was mentally ill.
An Ohio man may be deported to Europe. Officials say he was a guard at a Nazi death camp. Prosecutors say John Demjanjuk, lied about his back ground when he came into the United States back in 1952. He's now 85 years old, a retired autoworker in the Cleveland area. He has one month to appeal or he could be sent to the Ukraine.
Let's head to the Forecast Center to check out the weather, because it is nasty, still, in parts of the country, Jacqui.
(WEATHER FORECAST)
O'BRIEN: Carrie Lee is here. And once again, you know, corporate suits like to talk about synergy. The synergy of the corporate world and the police blotter continues, doesn't it?
CARRIE LEE, CNN FINANCIAL CORRESPONDENT: Yes, we've talking about these stories for so long. Well, HealthSouth, there is a really interesting new development here. The company is now suing its founder and former chief executive, Richard Scrushy, for $76 million. This is a suit that is a countersuit to Scrushy's file against the company for breech of contract.
Basically, Schrushy is trying to get back $100 million from the company for accrued pay, bonuses, stock compensation. Well, now the company itself is countersuing. Remember, Scrushy was ousted after being accused of directing a multi-billion dollar accounting scandal against the company.
He was found not guilty in June of criminal charges. There are still some civil charges against him. Basically, the company saying, well, we don't care. We know he did something wrong. And they're trying to get their money. So it is going to be a real back and forth to see how this all works out.
O'BRIEN: A little different burden of proof there, the board room, as opposed to the jury room, isn't it?
LEE: Absolutely, absolutely.
COSTELLO: Still if he's found not guilty, maybe he is?
LEE: It is making the case very difficult. But civil charges still have to come. But we'll see if they get any of their money. I don't know.
O'BRIEN: How did the markets do yesterday?
LEE: Markets were up a little bit. Oh, we talk about Richard Causey, yesterday, former chief accounting officer over at Enron. He did plead guilty to one count against him.
O'BRIEN: Oh, yes.
LEE: This is a securities fraud, relating to Enron. This could be a very big deal for former CEO Jeff Skilling and former Chairman Ken Lay. They're trial expected to start next month. And he is a key witness in this. So --
(CROSS TALK)
COSTELLO: We're going to talk to Jeffery Skilling's lawyer a little later on AMERICAN MORNING.
LEE: Interesting.
COSTELLO: He seems to think that it won't have any affect.
LEE: Well, I don't know about that. But anyway, Causey looks like he could very well end up spending seven years in jail, could be reduced to five. And he's going to have to pay $1.25 million. But he is a key witness. So, don't believe that it is not going to be a big deal.
O'BRIEN: Don't believe that hype.
LEE: Exactly.
COSTELLO: Well, you come out and help me do the interview and beat up on him.
LEE: All right.
COSTELLO: You're "Morning Coffee" is coming up next. Why one terrorist thinks he should have been a consultant on the new move, "Munich". Stay with us for "Morning Coffee".
(COMMERCIAL BREAK)
O'BRIEN: All right. Sounds like "Morning Coffee" music to me.
COSTELLO: Oh, sounds like a whole lot of memories I'd rather forget.
O'BRIEN: Let's not go there.
COSTELLO: No, let's not.
O'BRIEN: Too early.
COSTELLO: Let's got straight to "Morning Coffee", shall we?
The man who planned the 1972 Munich Olympic massacre is really, really mad at Steven Spielberg. It seems he thinks he should have been a consultant on Spielberg's new movie, "Munich". The movie is about the Palestinian terrorists who killed 11 Israeli athletes and the Israeli revenge assassinations on the killers. For the record, Israel does not admit to the assassinations.
Spielberg says the movie is fictional and it is his prayer for peace. Muhammad Daoud (ph), the man behind the Olympic terror attacks thinks "Munich" shows only the Israeli side of the story. Israeli audiences have said the movie shows a naive view of terrorism.
O'BRIEN: What does he have an agent, too, or something? I mean, you know?
COSTELLO: I know. He wanted to be consulted, but -- actually Palestinians were consulted for the movie, but Steven Spielberg isn't saying who they were, who they are.
O'BRIEN: Steven Spielberg didn't dial up a terrorist and ask him what he thinks.
COSTELLO: Well, not Muhammad Daoud (ph), anyway.
O'BRIEN: All right.
COSTELLO: There was an interesting story on Page Six of the "New York Post" about Sean Lennon. This is the follow up today. But I'll read you what was on Page 6 yesterday, because it's kind of sad.
Sean Lennon, John Lennon's son --
O'BRIEN: You would think he could get any girl he wants, right?
COSTELLO: You would think, Miles.
O'BRIEN: You would think, right?
COSTELLO: But his New Year's resolution is to find a new girlfriend. And he's asking Page Six to help him find one. And this is what he said. "Any girl who is interested must simply be born female, and between the ages of 18 and 45."
O'BRIEN: Setting the bar kind of low, there, right?
COSTELLO: Yes. "They must have an IQ of above 130. And they must be honest. They must not have any clinical psychological disorders, and a kind heart. Clearly beautiful, but beauty on the inside is more important, but, no deformities, third legs, fifth nipples. I'm completely alone and I'm completely miserable."
So, since yesterday all of these women have been sending their pictures into Page Six.
O'BRIEN: And apparently they meet the criteria? And who know? Maybe a budding romance is on its way.
COSTELLO: We'll keep following this story, because poor Sean Lennon. That's pathetic, isn't it?
O'BRIEN: It is. I -- you know, he's -- looks like his dad, too! I don't know.
COSTELLO: And he has lots of money and he's probably a fun guy and --
O'BRIEN: But he's lonely. All right, well girls, listen up.
All right. A close call for the world-famous New York Boys Choir of Harlem. It was threatened last week with eviction from the public school it calls home. But now living to sing another day, under a take it or leave it deal from the city. CNN's Senior Correspondent Allan Chernoff explains.
(BEGIN VIDEOTAPE)
ALLAN CHERNOFF, CNN SR. CORRESPONDENT (voice over): The Boys Choir of Harlem has been a pride of New York, keeping kids off the streets and on the national stage. For the past dozen years its instructors have been teaching courses at this public school in Harlem.
But after repeated scandals and financial troubles at the boy's choir, the city's Department of Education, last week, threatened to evict the organization from the school. WALTER TURNBULL, HARLEM BOYS CHOIR FOUNDER: It's a real slap in the face for understanding what it is that the children need.
CHERNOFF: The Department of Education says Doctor Turnbull is to blame for his choir's demotion. It says he failed to fire instructor Frank Jones, who was convicted three years ago of sexually molesting a student. Then, failed to give up his role running the boy's choir, as he had promised the city nearly two years ago. Turnbull claims he eventually did comply.
TURNBULL: I did step down as the head of the organization. Now there is a lot of details with that. I am no longer CEO. I am artistic director.
CHERNOFF: Now, after negotiations with the choir's board, New York City plans to push the boy's choir out of the public school curriculum and relegate it to just another after-school program, according to a source familiar with the talks.
Parents complain the choir's change of status could cause problems at the school.
KIRA WESLEY-BUSHER, PTA PRESIDENT: The Boy's Choir of Harlem gives them a sense of hope to become something. So that sense of hope is right at their reach.
CHERNOFF (on camera): Financial troubles had recently force the boy's choir to lay off its instructors. Now, without support from the Department of Education, parents fear their children may become victims of an administrative battle with the city. Allan Chernoff, CNN, New York.
(END VIDEOTAPE)
O'BRIEN: Coming up in the program, a CNN "Security Watch". Can small talk help prevent terrorism? A closer look at the latest airport security program. That's ahead on AMERICAN MORNING.
(COMMERCIAL BREAK)
O'BRIEN: Strong winds and no rain again today in Texas and Oklahoma where those fires have destroyed more than 100 homes. We'll look at what's ahead for the fire teams today.
Relentless rain, meanwhile, in California, putting rivers to their highest level in seven years. It's not over yet there, either. The forecast is ahead.
And the shocking story, out of Pakistan, of the father who killed his daughters, with no remorse. He says he was protecting family honor.
ANNOUNCER: You're watching AMERICAN MORNING with Soledad O'Brien and Miles O'Brien.
COSTELLO: And good morning to all of you. Oh, it is still nasty in parts of the country and that's not meaning good things for the fires in Texas and Oklahoma.
O'BRIEN: No, wet on the West Coast and horribly dry and windy in the middle part of the country. In parts of Texas and Oklahoma this morning, they're waking up to scene of devastation.
Fires in those two states are blamed for killing five people, four of them in Texas alone. Among the buildings burned, a church in Cross Plains, Texas, 150 miles southwest of Dallas. Several people, who attend the church, also lost their homes.
Two deaths in Cross Plains are blamed on the fires. In the 9 a.m. Eastern hour, we'll talk to the church's pastor. There you see the remnants of the stained glass.
In Oklahoma, moister air and calmer winds Wednesday helped firefighters beat back flames in 12 counties. But high winds and relatively low humidity are in the forecast and that means more trouble ahead, of course.
It's not the fire, but rain that is the problem in Northern California. There's already been a lot of it, and more on the way. Flood warnings are out. Rivers are at seven-year high levels. And on top of that, a series of even more intense storms expected to hit the state beginning tonight.
In the Sierra Nevada, all of this rain is turning to snow. Colder air moving into the region will make for lots of snow. Good news, of course, for skiers. Bad news for travelers.
Time to check the forecast, of course, Jacqui Jeras with that.
(WEATHER FORECAST)
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