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CNN Live Sunday

Storm over Port Security; Gunmen Attack Sunni Mosque in Baghdad; Iran Threatens to Resume Enrichment; Tight Security for Oscars; Sentencing Phase For Moussaoui Starts Tomorrow

Aired March 05, 2006 - 16:00   ET

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

FREDRICKA WHITFIELD, CNN ANCHOR: Now in the news, national security and U.S. ports, the controversy over whether a Dubai-based company should manage American ports heats up. In just a minute, an exclusive interview with the head of Dubai Ports World and a sneak peek inside, plus a live report from the White House.
More sectarian attacks across Iraq and another Sunni holy site is targeted by gunfire. The violence has shaken up Iraqis so badly, civilians are rushing out to help police fight the insurgents. We'll have a full report on that from Baghdad in seven minutes.

Reconnecting with AT&T. The telecom giant agrees to buy BellSouth in a merger to streamline the ownership and operations of Cingular Wireless. The $67 billion deal will reunite AT&T with some of the Ma Bell Baby Bells it was forced to let go in 1984.

A major league legend hospitalized. Former Minnesota Twins great Kirby Puckett has suffered a stroke. It happened while the 44-year- old was at his home in Arizona today. Puckett, who led the Twins to two World Series titles, is undergoing treatment at a hospital in Scottsdale.

An SUV, a weapon of revenge? A University of North Carolina grad charged with nine counts of attempted murder is due in court tomorrow. Police say Mohammed Reza Taheri-Azar drove his sports utility vehicle into a crowded university hot spot Friday, trying to avenge Muslim deaths worldwide, he said.

Hello and welcome to CNN LIVE SUNDAY. I'm Fredricka Whitfield. Also ahead this hour, the countdown is on. We're four hours away from the Academy Awards. We're going live to the red carpet for a preview. Plus, Oscar's security, what police are doing to keep the awards show running smooth.

But first a look at our top story. What began as a business deal balloons into an international controversy. A company from the United Arab Emirates approved to manage six major ports in the U.S. -- that decision by the Bush administration has outraged many who fear the company cannot be trusted to keep U.S. ports safe. Now the CEO of Dubai Ports World presents his case and gives CNN an exclusive tour of the facility in the United Arab Emirates. Here's CNN's Carol Lin.

(BEGIN VIDEOTAPE)

CAROL LIN, CNN ANCHOR (voice-over): This is the United Arab Emirates company under Washington's microscope, Dubai Ports World, now at center of the storm in Washington. The pressing question, should the company be allowed to run operations at six American ports? In his exclusive interview, CNN's Wolf Blitzer asked about security concerns.

WOLF BLITZER, CNN ANCHOR: How can you assure the American public that if this deal goes through the ports of Baltimore and Miami, New York, New Jersey, New Orleans -- these are some of the major ports in the United States -- that terrorists won't come in, infiltrate through you, DP World, and create havoc at these ports?

MOHAMMED SHARAF, DUBAI PORTS WORLD CEO: I would say number one, we are ISPS-approved terminal operator.

BLITZER: What does that mean?

SHARAF: That means International Standards for the Port Security. So we are approved by the international organization. We are approved by the U.S. authority to come into the U.S. I would say, look at our credentials in different ports around the world, whether it's in Korea, it's in China, it's in Europe.

LIN: Security has been the focus of a firestorm over the deal. Democratic New York Senator Charles Schumer is one of the lead critics.

SEN. CHARLES SCHUMER (D), NEW YORK: It is just poppycock that the port terminal operator has nothing to do with security. I know some pundits have latched on to that. Talk to anyone who knows about ports, they have a lot to do with security.

BLITZER: What percentage of the containers here in Dubai are actually physically inspected?

SHARAF: That, I don't have the real figure. I think the customs people would be the right people...

BLITZER: The UAE customs people.

SHARAF: UAE customs, yes. They would be the right people to tell you what percentage.

LIN: The percentage of Americans concerned about the deal is still high. According to a CNN/"USA TODAY"/Gallup poll, when asked about whether they were in favor of the proposed sale of cargo operations at the ports to the Arab company, only 17 percent said they favored the deal, 66 percent said they opposed it with 17 percent saying they were unsure. The deal will undergo a more comprehensive 45-day government review. Sharaf indicated his company would agree to additional scrutiny.

SHARAF: Yes. And within that 45 days and later on if they would require, we would also go through all the security measures as far as personnel are concerned.

LIN: Critics like Schumer still worry the 45-day review will be little more than a rubber stamp. Carol Lin, CNN, Atlanta.

(END VIDEOTAPE)

WHITFIELD: And Senator Schumer is not alone today. Other lawmakers called for a complete overhaul in the way deals like this are handled. Let's go live now to CNN White House correspondent, Dana Bash. Dana?

DANA BASH, CNN WHITE HOUSE CORRESPONDENT: Well Fredricka, the president arrived back from a trip to south Asia before dawn this morning, to the harsh reality that those other lawmakers that you're talking about are leading figures in his own party.

A top Republican say the more they learn about the process that approved this deal, the more outraged they are. House Armed Services Chairman Duncan Hunter said this morning that -- first of all, he's almost always a Bush ally -- he said that the president just did not have the basic facts about what he said should have been red flags when it comes to security.

(BEGIN VIDEO CLIP)

REP. DUNCAN HUNTER (R), CALIFORNIA: I think they looked at it from a very superficial level and they didn't get the intelligence briefs that go to Dubai's activities to trans-ship things like centrifuge parts. They didn't look at the front companies that Germany has identified as operating in Dubai to secure nuclear components for Iran and I think if the president gets that information, I think he's probably getting it now, I think we're going see a turnaround.

(END VIDEO CLIP)

BASH: Now it's unclear if that is going to happen. Mr. Bush has made very clear he had looked into the process and does think that it is a safe thing for this deal to go through, but both Duncan Hunter and another leading Republican that is the House -- excuse me, the Senate Homeland Security Committee Chairman Susan Collins both said that this process simply needs to be changed, that it is skewed too much to focus on the business deal and not enough on national security because of the so-called CFIUS process. This agency (ph) is led by the Treasury Department.

What Susan Collins said today is that she and her Democratic counterpart, Joseph Lieberman of Connecticut are going to introduce bipartisan legislation this week to shift that process to the Department of Homeland Security. Fredricka?

WHITFIELD: Dana Bash at the White House, thanks so much.

And stay tuned for more of Wolf Blitzer's exclusive interview with the CEO of Dubai Ports World. Find out why he says Americans should trust his company and what the CEO predicts will happen to the deal in the days ahead. That's coming up at the bottom of the hour.

And coming up in the next hour, a behind the scenes view of the company in an exclusive tour you'll see only here on CNN. Remember to stay tuned to CNN day and night for the most reliable news about your security.

A Sunni mosque in Baghdad riddled with bullet holes. The target of yet another sectarian attack in Iraq. It was a deadly assault and it wasn't the only one. Reporting from Baghdad now, here's CNN's Aneesh Raman.

ANEESH RAMAN, CNN BAGHDAD CORRESPONDENT: Sectarian attacks in Iraq continue. Overnight, an hour-long gun battle took place in the western part of Baghdad between gunmen dressed as Iraqi police commandos and guards at a Sunni mosque. At least three of the guards were killed, some six others wounded.

And then today, as well in the western part of Baghdad, gunmen attacking a minibus killing two relatives of one of the country's most prominent Sunni sheikhs, as well as wounding another Sunni imam. This, as the country faces a leadership vacuum, unanswered right now is the basic question of who will be running Iraq for the next four years.

There is mounting pressure from Sunnis, Kurds and secular politicians for Iraq's current prime minister Ibrahim Al-Jaafari to resign as the Shia candidate for prime minister. Once again, no indication that he is set to do so, but it is now increasingly unlikely that any scenario would emerge where Ibrahim Al-Jaafari will remain as the country's prime minister. This as the country's parliament is set to meet by the end of next week. They face a March 12th deadline, nearly three months after Iraqis went to the polls to vote them in. Aneesh Raman, CNN, Baghdad.

WHITFIELD: Iran, meantime, ups the nuclear ante. Tehran warns it will resume large-scale uranium enrichment if it gets hauled before the U.N. Security Council. A top official says Iran will also use oil production as a weapon if the dispute with the west gets any worse. Those warnings came as thousands of Iranians took to the streets in support of the country's nuclear policies. Crowds also gathered at mosques, shouting "Death to America."

Well does resuming large-scale enrichment put Iran that much closer to building nuclear weapons and what about its neighbor of Iraq? How will the secular violence there potentially influence Iran? Proposing those questions to Jim Walsh of MIT's security studies program. He has recently returned from an extensive trip to Iran. Good to see you, Jim.

JIM WALSH, MIT SECURITY STUDIES PROGRAM: Good to see you, Fredricka.

WHITFIELD: Well first let's talk about the enrichment program or the promise of large-scale enrichment for Iran. Tomorrow the IAEA will be meeting, what will be the focus?

WALSH: Well, the focus will be the most recent report by the director general of the International Atomic Energy Commission, Mr. ElBaradei. He has released a report last week that basically says, "We've got these issues with Iran, we can't give them a clean bill of health until we resolve these issues and they are not resolved."

So my own guess is that the security council will then say to IAEA, "Well, we're going to give you an expanded mandate or we're going to give you extra powers to investigate this and we'll give you four months, six months, some period of time. Go back and try one more time with this expanded mandate to try to resolve these issues." I don't think, for example, it's going go directly to economic sanctions, which is what a lot of folks talk about. I think we're seeing basically a step process, step-by-step, approaching economic sanctions.

WHITFIELD: So when Iran threatens that it will have large-scale nuclear enrichment as a result of what could potentially happen in that meeting tomorrow -- you just got back from Iran. Are they bluffing or are they very serious about this?

WALSH: Well, in the near-term, I think that is more of a threat than substance. Why do I say that? To begin with, it's going to be awhile before Iran can get things up to a commercial scale, an industrial-scale level of enrichment.

Even if there weren't sanctions or other impediments, it would take them awhile to do this, years to do this. So it's not like they can turn on a dime tomorrow and suddenly build a commercial-scale enrichment plant.

The other thing to keep in mind...

WHITFIELD: Yes, go ahead.

WALSH: ... Fredricka, just briefly, is this is typical of Iranian policy and what any country would do. On the one hand they're saying, "If you do this, we're going to respond." But they're also making some conciliatory gestures. There are other remarks that say a compromise is possible. Both things are in play right now.

WHITFIELD: Well what's interesting too is in today's "New York Times," it's reporting that Iran doesn't have the working machinery in which to convert uranium or into a toxic gas, which then has to lead to will there be concern that perhaps there's a relationship between Iran and any other country who would be willing to perhaps offer the expertise or the kind of machinery they would need?

WALSH: Well the good news here is that the machinery you need to enrich uranium is very specialized machinery, very specialized metals. These things are actually quite delicate. They spin at super-high speeds and unless you build them correctly, they can fly apart and break up. And so they're very delicate.

And so therefore, it's easier to watch the transfer of materials or technology from a third party, from a third country. Now the place where Iran got a lot of this was the Con (ph) network. Now the Con (ph) network is under surveillance, partly broken up, maybe not all of it's broken up. But Iran is under the microscope here and all of the countries in the world, most particularly the United States, are going to be watching for transfers. So I think that's less of a probability.

WHITFIELD: Also under the microscope, the neighbor of Iraq and its secular violence most recently. So many neighboring countries in the Middle East are Shiite dominant, so you have to wonder, the kind of violence that is taking place now between the Sunnis and Shiites -- might that feud broaden, perhaps past Iraq and into some of these other, nine other Shiite dominant countries.

WALSH: Well there are certainly big Shia communities in the other countries surrounding Iran. But there are also large Sunni communities in those nations.

I think certainly Iran -- my discussions in Iran, what folks were telling me was, "We don't want to see chaos in Iraq because if there's chaos in Iraq, that means refugees coming into Iran. That means economic problems and that means that some of that Sunni violence might spill over into Iran."

A lot of Iranians told me that al Qaeda is mad at the U.S., but Iran is next on their list. So I do think -- we saw it in Jordan. We saw al-Zarqawi stage an attack from Iraq into Jordan. And so I think if things were to get worse, yes there's a possibility that it would spill over.

But the question is does that lead to civil war all over the place? No. I think the main focus, the main concern right now is sectarian violence from Muslim, within the Muslim community, Shia versus Sunni, within Iraq and whether that will lead to civil war within Iraq.

That's the No. 1 fear right now.

WHITFIELD: And a concern that Iranians, perhaps, have expressed to you while you were visiting -- did they express any concerns of any kind of potential refugee crisis or anything like that? The kind of spillover that you were talking about from this secular violence in Iraq.

WALSH: Absolutely. You know, the irony here is that actually the U.S. and Iran have some common interests here, probably more common interests than things that divide them. One of their common interests is a stable and prosperous Iraq. If Iraq goes down the tubes, that hurts not only the United States and the West because of the oil picture and the violence is being a hornet's nest of violence. It hurts Iran, which shares that long border with Iraq. So both countries, neither country wants this thing to go to hell, but there is the possibility that if it does start to descend then Iran will feel a need to intervene.

WHITFIELD: OK, Jim Walsh of MIT. Thanks so much and have a great week.

WALSH: You too, Fredricka, thank you.

WHITFIELD: Well although it's not certain charges will follow, the Pentagon is launching a criminal investigation into the death of army ranger Pat Tillman. The army top brass says there are still questions to be answered. Tillman's family has been pressuring the military to get to the bottom of his 2004 death.

(BEGIN VIDEO CLIP)

MICHAEL CARDOZA, TILLMAN FAMILY ATTORNEY: Pat Tillman Sr. and the rest of his family were quite upset and kept after the army to do a further investigation and it looks like they're finally listening to the Tillman family.

(END VIDEO CLIP)

WHITFIELD: Tillman died while on duty in Afghanistan. The Pentagon initially blamed his death on Afghan insurgents, then later blamed friendly fire. Tillman gave up a lucrative football contract to join the army in the aftermath of the 9/11 attacks.

To Hollywood now where the stars will be shining on the red carpet tonight.

BROOKE ANDERSON, CNN ENTERTAINMENT CORRESPONDENT: I'm Brooke Anderson on the Oscars red carpet, where the stars will be in just a couple of hours. This red carpet turns into a fashion runway for them in a sense. After the break, all the action from the Oscars, as we lead up to the Academy Awards. CNN LIVE SUNDAY returns after this.

(COMMERCIAL BREAK)

WHITFIELD: Well, the red carpet is out, the Kodak Theatre in Los Angeles is decorated with Oscar -- giant Oscar statues, that is. And Hollywood is ready for the 78th annual Academy Awards. Insiders say low-budget films are poised to outdo their big studio competition this year. Our Brooke Anderson is on the red carpet, looking very lovely, Brooke.

ANDERSON: Thank you, Fredricka. And in addition to the giant Oscar statutes, look at this. It's a miniature Oscar and it's edible. It's actually a chocolate that Chef Wolfgang Puck gave to me a few moments ago.

So everything around here is celebrating the Academy Awards. And it surely is exciting right now. Hundreds of fans have arrived, they're here, and they're even doing the wave for us right now. A bit of an anemic wave, but they're giving it their best shot.

Hundreds of fans have arrived. By the end of the evening, 3,500, 4,000 people will have passed through this red carpet area, photographers, cameramen and also the invitees.

Now this year is a year for not the big blockbuster, but the low budget, independent film and also films with a message, with more serious themes and to talk about that, I want to mention the best picture nominees. First, "Brokeback Mountain" leading all the nominees with eight nods. It is the story of two gay cowboys. We've also got "Crash," about racial tensions in Los Angeles. "Capote," it follows author Truman Capote as he wrote his book "In Cold Blood." "Good Night, and Good Luck," chronicles Edward R. Murrow's battle with Senator Joseph McCarthy and then you've also got "Munich," the account of terrorists who murdered Israeli athletes in the 1972 Olympics. So some very serious themes there.

Many believe it's going to be a very tight race between "Brokeback Mountain" and "Crash." OK, there is controversy surrounding this year's Oscars and it involves one of the nominees for best foreign films. It's called "Paradise Now" and it depicts Palestinian suicide bombers in what some are calling a sympathetic light. An Israeli group is hoping to have this nomination pulled at the last minute. They have even asked the academy to do that. They've sent a petition with more than 30,000 signatures. They're very upset about this movie and the director of "Paradise Now," Hany Abu-Assad, has responded to this controversy.

(BEGIN VIDEO CLIP)

HANY ABU-ASSAD, DIRECTOR, PARADISE NOW: Well again, they have the rights to do that. I think it's a good way of expressing your anger. It's better than to use bullets and I understand any feeling from also other side. If you don't understand the other side you will never solve this problem.

(END VIDEO CLIP)

ANDERSON: "Paradise Now," is nominated for best foreign film, as I said. And the academy has also responded to the controversy, saying that the movie is an excellent film and that is what the Oscars are about.

It will be a very star-studded evening here, not only with the big-name nominees, but also with some presenters who aren't even nominated. I want to run through some of those right. You've got Jessica Alba, Jennifer Aniston, Steve Carell, Will Ferrell, Jack Nicholson, Luke and Owen Wilson. The list just goes on and on and on. Fredricka, producer Gil Cates has said he is looking for viewers, he's looking for ratings and, of course, that desire goes into who he has chosen to be here as presenters.

WHITFIELD: All right, Brooke, well have a lot of fun out there. We'll be watching.

ANDERSON: Thank you.

WHITFIELD: And you may not see them in the crowd there behind her, but amid the lone jewels and the designer gowns that will you will be seeing later and the tuxedoed security guards, some elusive, some not, will be will be staked out at the Kodak Theatre guarding everything Oscar. Our Dan Simon joins with us more on that, Dan?

DAN SIMON, CNN CORRESPONDENT: Well hey, Fredricka. Police tell us as a matter of protocol, they are treating this area as a potential target of terrorism.

As you can imagine security is tighter than a drum. There are hundreds of police officers here. I just saw several of them actually carrying their riot gear and also the Motion Picture Academy employs dozens and dozens of private security guards here at the Kodak Theatre.

Hollywood Boulevard, we're here at the intersection of Hollywood and Highland. Hollywood Boulevard has been closed for several days as a security precaution. And also in past years, we've seen snipers on some of the adjacent buildings. We'll probably see some of that again this year and police are also employing some new technology this year. They're using cameras to keep an eye on suspicious people. Take a look.

(BEGIN VIDEO CLIP)

PAUL VERNON, LIEUTENANT, LOS ANGELES POLICE: For this event this year, we'll have 10 surveillance cameras to monitor the area of Hollywood Boulevard, which will come into play here for the Academy Awards, that we didn't have last year. So the police department has that in addition to all of our other security measures that we have in place, the fixed post officers in uniform, undercover officers that are watching the area that can respond to an incident.

(END VIDEO CLIP)

SIMON: So, law enforcement tells us they're ready. They're not expecting any problems. Actually the most common problem here in terms of the arrests, trespassing. People going where they shouldn't go, but as you can see there are lots of barricades here. If the camera pans, you can see all the fans lined up here in Hollywood and Highland and they're not going anywhere for the moment. Fredricka, back to you.

WHITFIELD: So, Dan, a lot of those fans who were lucky enough to kind of get a front row seat, did they have to go through any kind of special security checks before being poised in those positions?

SIMON: Well for the people on the red carpet, that's a different story. Yes, they do have to go through metal detectors, et cetera. But for people just here on the street, they're free to come and go. But if you're going get onto the red carpet, you're going to have to have a press badge or you're going to have to be a law enforcement officer, Fredricka.

WHITFIELD: Special clearance, all right, Dan Simon. thank you so much. A special edition of "SHOWBIZ TONIGHT" live from the red carpet begins at 5:30 Eastern today on "Headline News." And then at 6:00 Eastern, CNN brings you a one hour pre-Oscar special, "Hollywood Gold Rush." Join A.J. Hammer, Brooke Anderson and Sibila Vargas as they get the inside scoop from your favorite Hollywood stars on the red carpet.

Well back now to our top story this hour, port security. We'll have more of Wolf Blitzer's exclusive interview with the CEO of Dubai Ports World. Find out why he says Americans should trust his company.

And on the heels of President Bush's trip to Pakistan, the country's prime minister has some tough words about the war on terror and Afghanistan's president Hamid Karzai, when CNN LIVE SUNDAY returns.

(BEGIN VIDEO CLIP)

BONNIE SCHNEIDER, CNN METEOROLOGIST: I'm CNN meteorologist Bonnie Schneider with a look at your cold and flu report for Sunday. Let's take a look at the map and show you places where we're getting outbreaks of the flu so far this season.

Well now we're into the latter part of winter and we have widespread activity across a good portion of the Southeast, including Florida, and then out to the West toward Texas. Sporadic outbreaks in the desert Southwest, with some local activity reported into Nevada and California.

You'll find regional outbreaks of the flu in the Midwest, especially in the northern tier of the country. That's a look at your cold and flu report for Sunday. I'm meteorologist Bonnie Schneider. Enjoy the rest of your weekend.

(END VIDEO CLIP)

(COMMERCIAL BREAK)

WHITFIELD: Now in the news, U.S. lawmakers turn up the volume on port security, saying it's time to overhaul the approval process for overseas management of port terminals and other facilities in the U.S. Meanwhile, the CEO of the Dubai company wanting to manage six U.S. ports is trying to reassure Americans. More of Wolf Blitzer's exclusive interview with him in just a moment.

Another place of worship comes under attack in Iraq. Police say gunmen disguised as Iraqi commandos peppered a Sunni mosque with bullets in western Baghdad. Three security guards are dead, at least six others wounded.

Iran threatens to resume large-scale nuclear enrichment if referred to the U.N. Security Council. The security council has the ability to impose sanctions. Its watchdog agency meets in Vienna tomorrow to discuss Iran's nuclear program.

And thousands of Indonesian Muslims protest against the U.S., calling it the world's enemy. Demonstrators are demanding American troops leave Iraq and Afghanistan, calling President Bush a terrorist. Thousands of police stood watch with two water canons nearby, but the rally ended outside, the tightly guarded U.S. embassy in Jakarta without incident.

More now on the controversial deal allowing a company from the United Arab Emirates to manage six major U.S. ports. Today, the CEO of Dubai Ports World granted CNN's Wolf Blitzer an exclusive interview and took him behind the scenes at the company's facility in Dubai. The CEO strongly defended DP World's reputation and said the port deal has been completely misunderstood.

(BEGIN VIDEOTAPE) SHARAF: We are an international terminal operator, we operator in five continents of the world. We are recognized as the best in the industry. Obviously, the American people have an issue. We would like to know that and rectify if there are any security measures that we need to take and we have not taken it yet, but we are very confident that we have met and will meet all the requirements.

BLITZER: Joseph King, who is the former head of U.S. Customs involved in terrorism issues in New York said this. He said, "Once this company, referring to DP World, gets control of ports they will be able to get a certain number of employees into the U.S. legally on work visas. Once people are in the country, it is much easier to establish sleeper cells. The people who pulled off 9/11 and who made the first attack on the World Trade Center in 1993 also had legitimate visas." What kind of controls would there be on workers coming into the United States representing DP World in terms of background checks, in terms of making sure that these are not Al Qaeda operatives?

SHARAF: Well, I would say that, number one, there's a misconception about port operators. Port operators don't control the security of the port. Any personnel coming in to work in U.S. will have to go through U.S. immigration, will have to go through U.S. security authorities and at that point they can come in and work.

BLITZER: But if you recommend them and they are operating in the ports they would have an advantage.

SHARAF: We are an international companies we have all nationalities. We have American people working for us, we have British people working for us and yes, we have Iranian nationals working for us. So as an international company we have all nationalities and all of them have to go through security measures whether they're working here or anywhere else.

BLITZER: What about this other issue that has come up that the opposition is the result of anti-Arab discrimination? Do you feel that?

SHARAF: I would say that we need to clarify to the American people. I think, again, it's a misunderstanding or misconception of us as DP World what sort of an operator we are. We need to clarify that. We need to educate the people in America that we are truly a global company and it is not in our best interest to get into those areas where we feel are our customer feels that security is an issue.

We have customers who cross the terminals, which cross hundreds of millions. Not only the vessels, the goods on them cost hundreds of millions of dollars. If they don't have any confidence in our operation they would not bring their ship to us. Each ship has up to 9,000, 10,000 containers on that. Can you imagine each container -- the value of each container is $100,000. What's the value of the total ship? Would they bring their ship to our terminal if they didn't feel secure or safe?

BLITZER: This is a really important deal for DP World, almost $7 billion. If it doesn't go through what are the ramifications. Well, as far as we are concerned the deal is going go through and the British, the government has approved it. We are just waiting for next week to conclude the deal. There are big consequences for the British market if it doesn't go through because investors are waiting for their money. The deal has been made. The management, the board on the port, the company has approved the deal. The government has approved the deal. The matter is basically waiting for the money to be transferred to the investors on. If they don't, big losses are going to be there for the investors.

(END VIDEOTAPE)

WHITFIELD: That was Wolf Blitzer's interview.

Well back home and back to the routine, President Bush leaving church this morning. He returned from Pakistan earlier at the end of a four-day visit to South Asia. Mr. Bush and Pakistani President Pervez Musharraf held talks on a wide range of issues including the war on terror. President Musharraf later told CNN he was annoyed with Afghan President Hamid Karzai over the disclosure of a list of alleged terrorist training camps in Pakistan.

(BEGIN VIDEO CLIP)

PRES. PERVEZ MUSHARRAF, PAKISTAN: Why would waiting for a presidential visit to hand me over this list? What was stopping them from giving this list or sharing these numbers immediately on occurrence? Is that the way intelligence functions? I am totally disappointed with their intelligence and I feel there is a very, very deliberate attempt to malign Pakistan, buy some agents and President Karzai and is totally oblivious of what is happening in his own country.

(END VIDEO CLIP)

WHITFIELD: President Karzai also alleged that the formal Taliban ruler Mullah Omar and his associates were hiding in Pakistan.

Testimony in Zacarias Moussaoui's trial begins tomorrow. Coming up, meet the two men who were the first to suspect the admitted Al Qaeda terrorist.

And we're going back to the red carpet in Hollywood to see how preparations are going for tonight's academy awards. You're watching CNN LIVE SUNDAY. We'll be right back.

(COMMERCIAL BREAK)

WHITFIELD: Al Qaeda speaks out again. A new videotape from Osama Bin Laden's top deputy. In it Ayman Al Zawahiri compliments Hamas on its victory in the Palestinian elections and he condemns the controversial Prophet Muhammad cartoons and the latest pictures of alleged torture at Iraq's Abu Ghraib Prison. The tape was first broadcast on the international Arab language news channel Al Jazeera.

The first and possible only person put on trial in the 9/11 attacks will soon know his fate. Opening statements in the sentencing phase of Zacarias Moussaoui's death penalty trial are set for tomorrow. Yet, if it were not for the vigilance of two Minneapolis flight school managers, this trial might not be taking place at all. CNN Justice department correspondent, Kelli Arena has their story.

(BEGIN VIDEOTAPE)

UNIDENTIFIED MALE: What's up?

KELLI ARENA, CNN JUSTICE CORRESPONDENT: They're good friends, military veterans who worked together at the same flight school. Tim Nelson spent 20 years in the air force, flew missions as a B-52 gunner in the Gulf War. Hugh Sims was in the air force for 24 years, flew 150 missions in Vietnam and then was an airline pilot for 16 years.

UNIDENTIFIED MALE: They offered me a job.

ARENA: They don't see much of each other since Sims retired but when they do, the talk inevitably turns to the strange flight student they met in August 2001. It was in Eagan, a small city 15 miles outside of Minneapolis. A foreign student was coming to the Panam International Flight School to learn how to fly 747 jumbo jets. Hugh Sims says the guy didn't even have a pilot's license.

HUGH SIMS, FLIGHT INSTRUCTOR: So at first it was more curiosity that my antenna was up.

ARENA: All the school had was an e-mail from the aspiring pilot asking for quote, help to achieve my dream. I am sure you can do something, he wrote. After all we are in America, and everything is possible. It was signed Zac, short for Zacarias Moussaoui.

TIM NELSON, FLIGHT INSTRUCTOR: He wanted to be able to take off and land a 747/400 and he wanted to operate between two particular points. Between New York and Heathrow, JFK and Heathrow Airport in London.

ARENA: Moussaoui, a French citizen of Moroccan descent sent the e-mail under name Zulaman Tangotango. That e-mail made staffers at the flight school curious even before Moussaoui got here. After he arrived the curiosity turned into outright suspicion. Monday, day one, Moussaoui showed up in the morning and settled his bill by putting down about $7,000 in cash.

NELSON: Cash is hard to track. We get customer who pays by check or by credit card you can kind of go back and say where did this guy come from?

SIMS: He came in. He was dressed in jeans. A colored T-shirt and a ball cap this guy doesn't look like he has the kind of money that would be just to do this for fun.

ARENA: Nelson, who had not seen Moussaoui yet went out of his way to meet him. He was telling me that it's an ego thing. I want to tell my friends I can fly a 747. That's a lot of money to money to spend to play, basically.

ARENA: Did you believe him?

NELSON: I didn't.

ARENA: Nelson says he had just viewed a training tape about a 1999 Japanese hijacking.

UNIDENTIFIED FEMALE: Brandishing a knife, he got into the cockpit as the plane was make its ascent.

ARENA: So you had seen that tape right at the same time that Moussaoui shows up.

NELSON: Yes, I have.

ARENA: And his motive for hijacking the plane that was he wanted to fly it.

NELSON: I'm thinking do I have that or do I have something worse on my hands?

ARENA: Even before 9/11 the hijackings were often associated with the Middle East. At the time Nelson had a class of Syrian airline pilots. He saw two of them greet Moussaoui in Arabic.

NELSON: I said what were you talking about? It was a greeting in Arabic. He's fluent and a native speaker. That bothered me?

ARENA: Why?

NELSON: It was just one more red flag.

ARENA: Tim Nelson is the son of a cop and once took the FBI entrance exam. With Moussaoui, things just didn't add up and at end of Moussaoui's first day at flight school, Sims was also troubled. Simms got a chance to spend some time alone with Moussaoui when he gave him a ride to where the 747 flight simulators were located. During the two-mile drive, Moussaoui said he was an international consultant. Simms didn't buy it.

SIMS: His skills for one although they are adequate, they certainly didn't indicate a high degree of sophistication or indicate someone who had spend a lot of time in English conversations.

ARENA: Day two, Tuesday. Tim Nelson pulled Moussaoui's flight school file, which should have contained all sorts of documentation. Oddly, this one had nothing. Then he ran into Moussaoui's flight instructor who said his student wanted to know about unusual things.

NELSON: He had asked questions like if the oxygen could be shut off. If I pulled the circuit breakers to disable or turn off the transponder.

ARENA: Sims and Nelson say Panam Flight School management was cautious about questioning a paying customer, but by the end of Moussaoui's second day at the school, Nelson and Simms were convinced something was wrong. NELSON: You really want this guy to go do something with this training and come back and say where did you learn to fly? Panam in Minneapolis. I don't want that.

ARENA: Wednesday, day three, Moussaoui was staying at this Marriott Residence Inn. He was scheduled to take flight simulator lessons the next day. Hugh Simms and Tim Nelson were worried that he might learn just enough about flying a 747 to become very dangerous.

After just two days, Sims and Nelson had seen enough. They both decided without the other knowing to call the FBI field office here in Minneapolis. Their calls were transferred to a counter terrorism agent.

NELSON: I've got a student that's raising a lot of red flags. And I said you need to understand that this aircraft weighs 900,000 pounds. It carries between 50 and 57,00 gallons of jet fuel and if you fly it at 350 knots into a heavily populated area you're going to kill a boatload of people.

ARENA: Simms called around the same time.

SIMMS: I explained to them that we had a student at the Panam Flight Academy that I think is asking for training that could become dangerous and I think that somebody ought to really look into what he's doing here? Is he here legally?

ARENA: It turns out Moussaoui was not. On Thursday, day four, FBI agents confronted him at the Marriott along with immigration officials who took him into custody.

NELSON: Hopefully calling between Hugh and myself calling, maybe we did stop something from happening.

ARENA: Later investigation by the FBI would show that Zacarias Moussaoui was an Al Qaeda operative like the four 9/11 pilots who had also trained at U.S. flight schools. Of all the Americans those operatives ran into, Nelson and Simms were the only ones who called the FBI.

SIMMS: I had 40 years of experience being around aviators. I would have been a fool to not recognize this.

NELSON: I was willing to be wrong over it. I was hoping I was wrong because being right, we saw what being right was, 9/11.

ARENA: Moussaoui later said his plan was to fly a plane into the White House. If Nelson and Simms hadn't acted on their suspicion, he just might have done it.

Kelli Arena, CNN, Eagan, Minnesota.

(END VIDEOTAPE)

WHITFIELD: A house explodes in California. A power plant explodes in West Virginia and violence at a rock concert. We're going across America with the details on all of these stories. You're watching CNN LIVE SUNDAY.

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WHITFIELD: In news across America now, investigators say fireworks are to blame for a massive early morning explosion at this Lakewood, California, home. The blast was so strong it knocked the house off its foundation and could be felt three blocks away. One person suffered minor burns. No word yet on why so many fireworks were being stored there in the first place.

Violence erupted between police and people attending a punk rock concert in San Bernardino, California. They were trying to reach two stabbing victims when the crowd began throwing rocks and bottles. Several people were injured and two police cars were destroyed before it was all over.

And a power plant worker in West Virginia is feared dead this hour after a 100-story high smokestack caught on fire in Moundsville. Officials say the worker was installing a fiberglass lining when the blaze broke out. Three other workers were saved in a daring helicopter rescue.

And we're about three hours away now from Oscar's big night. A look at how things are going the red carpet when CNN LIVE SUNDAY returns.

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WHITFIELD: They are already trickling in; Hollywood's movers and shakers are converging on the Kodak Theater in Los Angeles. Some insiders say tonight will be an Oscar night like none we've ever seen, along with the diamonds and pearls, of all things plastic, has been a hot item. Sheets of it have covered the red carpet and the giant statues this week to keep recent rains from ruining them.

Let's check in with meteorologist Monica McNeal who is in the weather center and it's not going rain on their parade tonight, is it? ?

MONICA MCNEAL, CNN METEOROLOGIST: No. It's not going to rain, you will see some clouds around, and it is mostly cloudy out there right now. A temperature of about 59 degrees and the temperature should get up to 63. So I think all in all the stars will be OK and as you all ready said they're well protected for that. As much money as they got that can have special umbrellas that will hold the rain out.

In the meantime across northern California and central California, that's where all the rain is. Take a look at what's going on right now. Heavy rainfall continues to move into northern and central California anywhere from two to four inches of rainfall. It will come down around central California; there are flood warnings for Napa River as well as the Russian River. A strong cold front will continue to increase the winds across San Francisco. Right now winds are about 20 miles per hour, but we've seen gusts up to 32 miles per hour. So you need to tie down or tie down anything that you want tonight and be aware of trees that can certainly, with all of that rainfall could be very, very weak and can topple over.

Also there's snow in the Sierra and western Nevada area, one to two inches and above 7,00 feet, we're looking at about four feet of snow. Transitioning quickly toward the Midwest. We're seeing snowstorms that are moving across parts of Chicago and heavy rain headed down toward St. Louis and Louisville.

Fredricka.

WHITFIELD: Thanks a lot, Monica.

When CNN LIVE SUNDAY returns a CNN exclusive, child sex trafficking right here in the U.S. We'll talk to a former child prostitute and go inside the ring of child exploitation and we'll be right back.

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