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American Morning
Terror on Trial; Former Enron Executives Face Off in Court Today
Aired March 07, 2006 - 07:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
M. O'BRIEN: I'm Miles O'Brien.
S. O'BRIEN: I'm Soledad O'Brien.
A compromise may be on the way that would salvage that controversial port deal. It's not exactly what the White House envisioned, though. We'll tell you what it is.
M. O'BRIEN: Terror on trial. Testimony underway in the sentencing of an admitted Al Qaeda member with ties to the 9/11 attacks.
S. O'BRIEN: Former Enron executives face off in court today as the prosecution's star witness prepares to take the stand.
M. O'BRIEN: Voters in Texas decide on Tom DeLay's political future today. The first time, a serious challenge for his congressional seat.
S. O'BRIEN: And an early end for a baseball star. Hall of Famer Kirby Puckett is dead at just 45 years old. We'll have a look back. That's ahead on this AMERICAN MORNING.
Welcome back, everybody. We begin with a "CNN Security Watch" this morning, "Bridging the Gulf". A compromise may be in the works which would allow the United Arab Emirates company to run key U.S. ports. Joining us is CNN's Kathleen Koch; she's at the White House for us this morning.
Hey, Kathleen, good morning.
KATHLEEN KOCH, CNN WHITE HOUSE CORRESPONDENT: Good morning, Soledad.
This port deal is certainly the controversy that keeps on giving. Another lawmaker has stepped forward, though, this time with a plan to possibly salvage this deal to let Dubai Ports World of the United Arab Emirates take over. Primary operation of six U.S. ports. This time a New York Congressman Peter King, believes that the deal could be made more palatable by using a U.S. company as a go-between.
(BEGIN VIDEO CLIP)
REP. PETER KING, (R) NEW YORK: Dubai Ports could still be the contractor but the actual work and access to everything would be controlled by a totally separate American company. My concern is people working within the company, people within the government, who, four and a half years ago were allied with our sworn enemy.
(END VIDEO CLIP)
KOCH: This plan is much more of a compromise than the one just proposed by another Republican senator, Susan Collins of Maine. She has proposed scrapping the entire process and starting over, calling it over the weekend, quote, "deeply flawed" and too weighed toward investment and not security concerns.
However, the White House says the president plans to stand by the port deal. Spokesman Scott McClellan insisting that the White House believes that lawmakers will be much more comfortable with the plan once this 45-day review period that's now underway is over and, once they get more information on it, Soledad.
S. O'BRIEN: All right. From the White House, Kathleen Koch for us.
Kathleen, thanks.
KOCH: You bet.
S. O'BRIEN: Later, this hour we will get more on this controversial ports deal. CNN's Wolf Blitzer is in Dubai. Miles?
M. O'BRIEN: Should he be executed or allowed to live life in prison without parole? A jury is hearing testimony in the sentencing file of Al Qaeda conspirator Zacarias Moussaoui. CNN's Jeanne Meserve is live at the courthouse in Alexandria, Virginia.
Good morning, Jean.
JEANNE MESERVE, CNN CORRESPONDENT, AMERICAN MORNING: Good morning, Miles.
The trial will pick up today where it ended yesterday with testimony from prosecutors about the history of Al Qaeda. But before that yesterday, there were opening statements from the defense and the prosecution, which gave radically different versions of events.
(BEGIN VIDEOTAPE)
MESERVE: The prosecution argues that Zacarias Moussaoui could have prevented this, and this, and this. Prosecutor Rob Spencer said authorities could of foiled the 9/11 plot, if when Moussaoui was arrested in August 2007 he had told authorities what he knew about Al Qaeda's plans. Instead, Spencer argued, Moussaoui gave the hijackers operational security.
Moussaoui's lies killed the 9/11 victims as sure as if he had been at the controls of one of the four planes that day, said Spencer, hold him accountable for causing these horrible deaths.
But Defense Attorney Ed McMahon (ph) called the government's argument a dream. Cataloging the government's failure to head other warnings and clues before 9/11. And McMahon (ph) said there was no evidence Moussaoui knew the names, phone numbers, or locations of any of the hijackers, or the date, timing and target of the attacks.
And McMahon said, Moussaoui couldn't fly and was viewed by fellow Al Qaeda members as useless, a nuisance, cuckoo. No one should be executed on such flimsy evidence, even an admitted Al Qaeda member, McMahon (ph) said. Please don't make him a hero. He doesn't deserve it.
Hamilton Peterson was in the courtroom. He lost his father and stepmother on 9/11 and he has already issued his verdict.
HAMILTON PETERSON, PARENTS KILLED ON 9/11: I would certainly believe he is an excellent candidate for the death penalty.
(END VIDEOTAPE)
MESERVE: Yesterday, there were no outbursts from Moussaoui, but as a training tape of Al Qaeda was played in the courtroom, Moussaoui appeared to sing along in Arabic, with the translation of the words, we defend our religion in blood.
Miles, back to you.
M. O'BRIEN: That's kind of chilling in a way, Jeanne.
Let's talk about the burden here that prosecutors face. In order to get the jury to vote for an execution, what do they have to prove?
MESERVE: They have to prove that his lying resulted in deaths and the summary of their arguments are what you heard in those opening statements yesterday. That if he had told investigators everything he knew about what Al Qaeda was up to, if they had been able to follow the clues, they would of been able to identify 11 of the 19 hijackers.
The defense, of course, saying that's a dream, it wouldn't of happened that way, look how many other times the government fumbled all the clues before 9/11 -- Miles.
M. O'BRIEN: So, the defense could use as a defense the well- documented record of government missteps that are already out there?
MESERVE: It's very clear that that's what they intend to do. They started it yesterday, Miles.
M. O'BRIEN: Jeanne Meserve in Alexandria, thank you.
Be sure to stay tuned to CNN day and night for the most reliable news about your security.
In Iraq, this morning, new video showing three of four Christian peace activists kidnapped now more than three months ago. The tape aired on the Arabic TV network Al Jazeera. Seen are a British citizen and two Canadians. The fourth hostage an American did not appear, and was not mentioned.
Meanwhile, sporadic attacks claim more lives. This, the scene of a car bomb attack on a U.S. military convoy in Baghdad. Five civilians were wounded there -- Soledad.
S. O'BRIEN: It's primary election day in Texas and things may not seem so sweet for Sugar Land's hometown boy. Former House Majority Leader Tom DeLay faces his first serious election challenge in more than two decades. AMERICAN MORNING's Bob Franken is live for us in Houston this morning.
Hey, Bob. Good morning.
BOB FRANKEN, CNN CORRESPONDENT, AMERICAN MORNING: Good morning, Soledad.
Now, he is not even going to stick around for the results. Tom DeLay is going back to Washington for congressional votes, but also to attend a fundraiser for himself. His critics are now complaining about that. His people feel it shows the confidence he has in the face of quite a few doubts now.
(BEGIN VIDEOTAPE)
FRANKEN (voice over): In the 22 years Tom DeLay accumulated power in Washington, his voters back home in the area around Sugar Land, Texas made his reelection a foregone conclusion. Not this time.
UNIDENTIFIED FEMALE: I've always voted for him, but I think this time, I think it's time for a change. I really do. I think it's time that Sugar Land has a change.
FRANKEN: These days, the talk over lunch turns to Tom DeLay's indictment on campaign money laundering charges. The three times he has been officially criticized by the House Ethics Committee. His connections to disgrace lobbyist Jack Abramoff.
DeLay has tried to convince his faithful he's been the victim of a political vendetta, particularly the indictment.
REP. TOM DELAY, (R) TEXAS: This act is the product of a coordinated, premeditated campaign of political retribution.
FRANKEN: A charge his loyal supporters embrace.
UNIDENTIFIED FEMALE: I think some of the things he's been accused of has been blown out of proportion.
UNIDENTIFIED MALE: (INAUDIBLE) And they are more smoke than they are fire.
FRANKEN: Still, there are three Republicans who are emboldened to run against DeLay. If he doesn't win an absolute majority tonight, he'll face a party runoff next month. And if he gets past that, he can expect a fierce fight from Democrats who view him as seriously wounded.
UNIDENTIFIED MALE: Haven't decided yet. Haven't decided yet.
FRANKEN (on camera): Because? UNIDENTIFIED MALE: Because I want to see -- I want to see how everything turns out.
(END VIDEOTAPE)
FRANKEN: Ultimately, this is going to turn out to be a story either of political survival or how the mighty have fallen -- Soledad.
S. O'BRIEN: How about his fund raising? He's always been known for his amazing fundraising. Is he losing any financial support, Bob?
FRANKEN: Not really. So far, he's had quite of bit of support from fellow Republicans particularly the national level. However, the danger this time is the Democrats smell blood, frankly. And they are vigorously raising money, too. This could be a very expensive general election in Sugar Land, Texas.
S. O'BRIEN: Sure sounds that way doesn't it? Bob Franken for us this morning. Thanks, Bob.
President Bush would have voted absentee in the Texas primary, but an aide apparently forget to arrange for the absentee ballot. The president and the First Lady, thought, aren't going to just jump in their pick up and head down to the voting station.
No, he's the president. He does not do that. They will depart for Texas this afternoon on Air Force One. The president is not in Tom DeLay's district. So it won't be an issue there. But could you imagine if you're the aide that screwed that up?
M. O'BRIEN: Uh, he's got some explaining to do.
S. O'BRIEN: Surprise. No, no, just bye-bye. You're done.
M. O'BRIEN: He's sweeping up the floor somewhere.
S. O'BRIEN: Now they've got to fly to Texas so they can vote.
M. O'BRIEN: They should bill him the cost for Air Force One and the convoys.
Another Texas story we are watching, the Enron trial. Today, expected to be a big face-off in court. Former Finance Chief Andrew Fastow is set to testify against his ex bosses and former confidants, former Enron executives, Ken Lay and Jeffrey Skilling. Live now to Houston to CNN's Chris Huntington.
Chris, he's a key witness, but not the entire case, is he?
CHRIS HUNTINGTON, CNN CORRESPONDENT, AMERICAN MORNING: No, he certainly is not the entire case. There will be scores of former Enron employees and executives. We've heard from several of them already.
But Fastow really is the main event. Just as an indication here, I don't know if you can see over my shoulder, the line of people that are already here to try to get into court, which doesn't open for nearly two and a half hours. The reason Fastow, though, is so crucial to the prosecution, Miles, is that as chief financial officer, he was the architect of the infamous partnerships that Enron used and the government contends that Enron fraudulently used to sweep debt and losses off its books and prop up its appearance of profitability.
And, of course, what Fastow can do is tell the jury that Ken Lay and Jeff Skilling knew everything about these deals and approved them, and that they were part of the conspiracy to, if you will, inflate the appearance of Enron in the public's eye -- Miles.
M. O'BRIEN: All right. So, what is the defense going to do? I guess try to discredit Fastow and said he pled out, cut a deal, and doesn't have any credibility?
HUNTINGTON: That is part of what they will do and what they've been doing really with all of the former executives who have pled guilty. They've made a big deal of the fact they tried to imply or to get the jury to draw the inference these folks made their plea bargain under duress.
With Fastow, they have another avenue to pursue. That is that he personally made about $25 to $30 million while managing these partnerships. So, in other words, he was sort of double dipping, and that is really what the defense is going to focus in on. As Ken Lay's lawyers said in his opening remarks there was really only one fraud in the case and that was Andy Fastow stealing, and stealing repeatedly. They will really try to hammer home the fact that Fastow, in a sense, was the bad apple. And that once his fraud was made public and concern about him was made public early in the fall of 2001 that created a panic which led to the collapse of Enron, so that is where the defense is going to try to hammer home -- Miles.
M. O'BRIEN: I think there is probably more than one bad apple at Enron, safe to say. Chris Huntington, in Houston. Thank you.
Soledad.
S. O'BRIEN: As we've been reporting, Baseball Hall of Famer Kirby Puckett has died. A day after he suffered a severe stroke at his home in Phoenix. Puckett played his entire 12-year career with the Minnesota Twins, winning two World Series. But he was forced to retire when glaucoma made him blind in one eye. He was inducted to the baseball hall of fame five years ago. He died at just 45 years old. Gosh that is such sad news at such a young age.
At 12 minutes past the hour, time for the forecast now. Chad Myers has that.
(WEATHER FORECAST)
S. O'BRIEN: Today, Congress will hear from victims of crimes on board cruise ships. This morning we will talk to one of the witnesses who is going to be testifying. Oh, she has a horrible story. Said she was raped by a crew member and that in spite of all her complaints and pleas that authorities essentially did nothing. We'll talk to her live in a few moments. M. O'BRIEN: Also, anti-military demonstrations. Taken to the extreme, hate-filled protests at the funerals of fallen U.S. troops. Imagine being the parents or some one who has lost a loved one and seeing this?
S. O'BRIEN: Break your heart all over again.
Of course, there is this. Have you heard about this rumored the Jackson family tell-all book from Jermaine Jackson? Going to happen? Not going to happen? Jermaine Jackson himself is speaking out on this issue.
M. O'BRIEN: There's a book to be written on that. Is it going to happen?
S. O'BRIEN: Stay with us. Here's a break. We'll be back in a moment.
(COMMERCIAL BREAK)
M. O'BRIEN: So, is one of Michael Jackson's brother writing a tell-all book or not?
S. O'BRIEN: Oh, I hope so!
M. O'BRIEN: Latest chapter in -- we all want this book, don't we? Jermaine Jackson saying there is no truth to those reports. Here is what Jermaine told CNN's Larry King.
(BEGIN VIDEO CLIP)
JERMAINE JACKSON, MICHAEL JACKSON'S BROTHER: Michael is a thousand percent innocent. I have spoken from my heart. I've spoken the truth and for me to -- I mean, this is not good for me, it's not good for the family. And, no, it's all false. It's lies. It's deliberate lies.
I am sick and tired. I am tired of people saying things saying I said things. Michael and this family are very close. Michael is doing fine. We are rebuilding, we are getting back to our lives and we got a lot of good things in store. And this is just to separate and tear down what we're come back with, which is good music, with great messages, and to give love to the world.
M. O'BRIEN: Submitted for your approval.
"The New York Daily News" reported some details of the book in question that the book deal was floating around, including the fear that Michael would commit suicide if he was sent to prison on child molestation charges.
S. O'BRIEN: Oh, you know there was a book deal floating around. You know they would approach every member of the family with a trunk of money --
(CROSS TALK) M. O'BRIEN: Yes.
S. O'BRIEN: To write a tell-all book.
M. O'BRIEN: You bet. A lot of it was the rivalries between the brothers and how systematically Michael Jackson went through and scuttled all of their individual careers, on and on it goes. It gets more and more tawdry.
S. O'BRIEN: When is your tell-all book coming out?
M. O'BRIEN: If I knew anything about Michael Jackson, I would of put it on stores --
S. O'BRIEN: Years ago.
M. O'BRIEN: All right. Now, be sure to tune in, by the way, to CNN 9:00 Eastern nightly for "Larry King Live."
S. O'BRIEN: Business news now. Wal-Mart turns to the Internet for a little PR help. They could use PR help at times. Andy is "Minding Your Business".
Good morning.
ANDY SERWER, CNN ANCHOR, AMERICAN MORNING: Good morning. More skirmishes in the Wal-Mart wars. A story in "The New York Times" this morning about Wal-Mart sending in the bloggers, contacting bloggers and providing them with information, little news nuggets that they could post on their website in their battle with critics.
S. O'BRIEN: Like what?
SERWER: This has to do, for instance, with the states that want to mandate that the company has to pay more for healthcare coverage. So the blogs are saying, this is terrible stuff. Well, it turns out a lot of the information comes from the company or from its PR firm. Nothing wrong with that. Some of the bloggers not disclosing it, comes from the company. Nothing really wrong with that. It sort of violates the rules of blogdom that you are supposed to say where your all your information come from. But it's not that big a deal really.
M. O'BRIEN: You know, it's interesting the U.S. military is also doing this; engaging bloggers to try to get the record set straight. And it just goes to show you how powerful they have become.
SERWER: That's right. And it's not part of what they call MSM, mainstream media. That's what the bloggers call us.
M. O'BRIEN: By the way, I think we just got blogged by doing that.
SERWER: Probably did.
Another little Wal-Mart nugget to tell you about this morning. A story about Wal-Mart versus the T-shirt maker. A guy named Charles Smith in Conyers, Georgia. He says that his T-shirts are in bad taste.
M. O'BRIEN: Wow.
"I love Wal-Ocaust. They have family values and they're alcohol, tobacco and firearms are 20 percent off."
There is a cease and desist order for Wal-Mart. Now, this guy Smith is suing Wal-Mart saying it's free speech. Back and forth we go in this country. It's a lightning rod, a hot button store.
S. O'BRIEN: You know, they've just given this guy so much publicity. When you do a big company sues a T-shirt guy.
SERWER: He's a tiny little thing. And he says, I'm in bad taste. They're in bad taste. You're all in bad taste and we don't want to hear about it anymore. How about that?
M. O'BRIEN: First Amendment can be ugly but we love it.
SERWER: Yes, true.
S. O'BRIEN: Andy, thanks.
M. O'BRIEN: There is a new battle brewing, as we say in the coffee wars.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: That's good. I like that.
JEANNE MOOS, CNN CORRESPONDENT: Mcdonald's!
UNIDENTIFIED FEMALE: Are you serious?
(END VIDEO CLIP)
M. O'BRIEN: Get out of town! Mcdonald's? Yes! Mcdonald's, new coffee! How does it stack up against the competition, we ask? Jeanne Moos with a taste test and we are going to submit ourselves to one, as well. We're going to go into the park. It is just, Cecil B. DeMille would love his production. Stay with us for more AMERICAN MORNING.
(COMMERCIAL BREAK)
S. O'BRIEN: Imagine this, you're at the funeral of your son, who just lost his life in combat in Iraq and right nearby is a protester who is holding a sign that says, "Thank God for dead soldiers". This message is coming from a fundamentalist Kansas-based church taking their demonstrations really to the edge of decency, if you can say that, bringing their message to the funerals of troops killed in Iraq or Afghanistan. Let's get to Barbara Starr, she's at the Pentagon for us with more on this story.
Barbara, this is such an upsetting story.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: Soledad, it is. It's very difficult to describe for our viewers but this is a very small, unpleasant group of people, that protest at funerals saying soldiers should not be honored by a country that supports homosexuality.
(BEGIN VIDEOTAPE)
STARR (voice over): They came by the hundreds. To pay silent respect to Army Sergeant Ricky Jones who died last month in Iraq, but the motorcyclists and veterans also came to protect Jones' family on this most difficult day. Protect them from protesters who never showed up. Members of a Kansas-based group have been appearing at military funerals across the country with hate-filled messages.
UNIDENTIFIED FEMALE: He went to hell for her sins.
STARR: The group says soldiers who fight for a country that supports homosexuality should not be honored.
UNIDENTIFIED MALE: God hates you and you're going to go to hell.
STARR: They had threatened to turn up at Jones' funeral.
REP. STEVE BUYER, (R) INDIANA: It is outrageous, appalling and indecent for an American citizen to commit crimes and perversions against a family grieving in the loss of their son. Army Sergeant Ricky Jones, with three of his comrades, were killed in Baghdad. With his body in transport to Kokomo, Indiana, someone has egged his family's home and left harassing phone calls that, quote, "I'm glad your son is dead."
STARR: The Kansas group did show up last month in Inanoka (ph), Minnesota at the funeral of Corporal Andrew Kimpel.
REV. FRED PHELPS, PROTESTOR: Every time a soldier gets blown to smithereens in Iraq from an IED, we rejoice. We are ordered to rejoice.
It has nothing to do with him. It's the Lord God Almighty destroying the fruit of this nation, and you know that. You know that's our position.
STARR: In an exclusive interview with CNN, a top army general addressed the issue for the first time.
BRIG. GEN. VINCENT BROOKS, U.S. ARMY: It hasn't gone over the brink yet, I don't think. But I worry about the direction we're headed at this point. It's getting more and more prevalent.
STARR: But the Army says it's not up to them to stop the protests.
BROOKS: Our focus has to be on the families of our fallen, that's the first priority. We also recognize that people have the right to assemble and a right to protest. That's -- we fight for that.
(END VIDEOTAPE) STARR: Soledad, by all accounts, this is a relatively small group of people, but now several states are fighting back. Several states considering laws banning protests at funerals and in Indiana, Ricky Jones' home state, just before his funeral service passed a law banning disorderly conduct at funeral services -- Soledad.
S. O'BRIEN: Oh, God, what a brutal thing for these family members who are bury their children. What could be more awful? I'm surprised that the military's attitude is kind of well, you know, it really hasn't come to a head yet. Why aren't they doing more?
STARR: This is a very difficult issue for the military. I can tell you behind the scenes every Army general, everyone I have spoken to is just absolutely furious. And have comments that probably aren't suitable for television. But publicly, they are cautious. They point out, of course, that soldiers fight and die for the right to free speech, as you were talking about on your broadcast earlier this morning. It's a very tough issue.
When does the First Amendment cross into what is completely inappropriate activity? It is something they are struggling with. But they looked at the funeral yesterday of Ricky Jones in Kokomo, Indiana, they saw all those people show up to protect the family, and they are hopeful that that is going to be their future response -- Soledad.
S. O'BRIEN: I guess you're right. Ricky Jones really did die to protect our rights, right? One of those rights is that idiots get to protest outside of his funeral. Weird enough. Barbara, thank you.
STARR: Sure.
S. O'BRIEN: Great report. Thanks.
Miles.
M. O'BRIEN: Security worries are fueling the controversy over the deal to hand over U.S. ports to Dubai owned company, but when it comes to security Dubai may actually be on the cutting edge. We will explain that. Later, Congress looks into some crimes aboard cruise ships. We're going to talk to a victim about a truly horrific experience. We'll find out why she had to fight for justice. Stay with us.
(COMMERCIAL BREAK)
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