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American Morning

Energy Problem Termed a "Crisis"; Durham D.A. Fights to Keep Job Amid Duke Rape Scandal; U.S. Troops Might Have Come Close to Capturing Zarqawi

Aired May 02, 2006 - 07:00   ET

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

ED HENRY, CNN WHITE HOUSE CORRESPONDENT; Another day, another Bush official calling the energy problem a "crisis." I'll tell you who and what it means for the midterm elections.
SOLEDAD O'BRIEN, CNN ANCHOR: Complaints and controversy and misconduct. A new report takes aim at Duke's lacrosse team. Just stops short, though, of calling for disbanding the team.

MILES O'BRIEN, CNN ANCHOR: Homeland insecurity. A former administration insider takes aim at the lack of protection and focus at Homeland Security.

Another agency under fire; some want it abolished. We're talking about FEMA. So how do they get ready for a fast-approaching hurricane season?

S. O'BRIEN: And Anna Nicole Smith gets a little love from the Supreme Court. She's still got a long fight ahead, though, if she wants to see the half billion dollars in cash she thinks she deserves. That story and much more, ahead on this AMERICAN MORNING.

Good morning. Welcome, everybody. I'm Soledad O'Brien.

M. O'BRIEN: I'm Miles O'Brien.

It may just be topic number one this morning all across the nation, and sometimes there's even an expletive involved in it. We're talking about gas prices. Let's check the latest "CNN Gas Gauge": $2.92 for unleaded regular. A month ago, $2.55; a year ago, $2.23. The cost of gas has President Bush in a proverbial pothole. A CBS poll finds eight in 10 Americans don't believe the president has a clear plan to handle the crunch, and 74 percent disapprove of the way he's handling the crisis.

CNN's Ed Henry, joining us live from the White House. And the C- word, crisis, is being bandied about now, Ed?

HENRY: That's right. Good morning, Miles. And those poll numbers you mention only raise the political stakes for this White House, as we get closer and closer to the midterm elections. And as the stakes go higher, White House officials seem to be trying to lower expectations a bit for consumers.

As you mentioned, yesterday White House spokesman Scott McClellan became the second senior Bush official to use the word crisis to describe the energy problem in the nation right now. McClellan was pressed about the fact that the president's energy secretary, Samuel Bodman, had not only called this a crisis, but had said that it could take up to three years for these gas prices to come back down substantially. Asked if the president agrees with his energy secretary, McClellan danced a little bit. He added a caveat, but then he did use the word crisis.

(BEGIN VIDEO CLIP)

SCOTT MCCLELLAN, WHITE HOUSE PRESS SECRETARY: For many families trying to live within a budget and make ends meet, it is a crisis. And I think that's the way I would describe it. Thankfully, though, as I mentioned at the beginning of the briefing, thankfully our economy is strong and is continuing to really surge ahead.

(END VIDEO CLIP)

HENRY: Now, McClellan stressed this is a long-term problem, the nation's foreign dependence on oil, and it's been building for decades. But later in morning, Senate Democratic Leader Harry Reid is going to try to blame the president for making this problem worse. He's holding a press event in which he'll say that a White House that's been run by oil men has been writing energy laws for the oil industry -- Miles.

M. O'BRIEN: All right, Ed, let's factor this into the political scene. With the midterm elections coming up, the concern among Republicans is this is going to hurt them badly.

HENRY: That's right. And the problem for Republicans right now is they don't -- they can't seem to find a solution. Even when they come up with some sort of a plan, like this $100 tax rebate to help people pay for gas, they can't win for trying. They're getting a backlash from voters who are basically saying, what are you trying to do, just trying to buy votes in these midterm elections? And if you're trying to do that, this is pretty cheap.

A hundred dollars only amounts basically to about two tanks of gas in most parts of the country right now. So Republicans are really struggling, not only with the problem itself, but they can't figure out what to do in the short term, Miles.

M. O'BRIEN: That's about one tank for me, Ed Henry. Thank you very much. That Yukon with 30 gallons or so, it hurts. Thank you very much. As Ed mentioned, Senate Majority Leader Bill Frist is pushing that $100 rebate for Americans to handle the gas crunch. At the half hour, we'll talk with him about the gas prices and whether he thinks that hundred dollar plan will work -- Soledad.

S. O'BRIEN: Some new developments to tell you about for the Duke lacrosse team. Decision two about the team's future. There's going to be a next season. A university committee says while they found a pattern of misconduct, it wasn't enough to decide to disband the team for good.

(BEGIN VIDEO CLIP) PROF. JAMES E. COLEMAN, JR., DUKE UNIVERSITY: We did not find racist behavior. We didn't find, you know, sexual assaults. We didn't find, you know, harassment. That was not the nature of the misconduct. And so, in our judgment, based on the record that we reviewed, it didn't warrant suspension or termination of the program. The conduct of the lacrosse players did not differ from the misconduct of other Duke students who drink too much and unfairly impose upon their neighbors.

(END VIDEO CLIP)

S. O'BRIEN: Here's what's in the committee report. Found a large number of players have been socially irresponsible, that the players need strict monitoring because of their alcohol-related problems. The report also says, though, that the team performed well, both academically and athletically.

The university committee did not take into account the rape allegations or the rape charges against two lacrosse players. That is something, though, that Durham voters might take into account when they go to the polls today. That's because the district attorney, Michael Nifong, is running to keep his job.

AMERICAN MORNING's Alina Cho has our story.

(BEGIN VIDEOTAPE)

ALINA CHO, CNN CORRESPONDENT (voice-over): Today's election is important because if the D.A. Michael Nifong loses, he could be out of office before the trial of the two Duke lacrosse players even begins. Regardless, defense attorneys want him off the case.

In one of 12 motions filed Monday, an attorney representing one of the suspects said, "In Nifong's zeal to make national headlines and to win a hotly-contested primary, he intentionally ignored evidence."

MICHAEL NIFONG, DURHAM DISTRICT ATTORNEY: There are some lawyers who, their way of trying a case in the media is not to call press conferences, but to simply file motions, court papers, that contain outrageous or false statements and assume that people report them as if they were facts.

CHO: Yet Freda Black, who wants Nifong's job, says the D.A. is most interested in winning the election.

FREDA BLACK, DURHAM D.A. CANDIDATE: Well, I've had a number of people suggest to me that because he did not have name recognition prior to the case, that he tried to use this case in order to obtain recognition, name recognition, to try to beat me.

CHO: The two Duke suspects, sophomores Reade Seligmann and Colin Finnerty, await a court appearance on charges of rape, kidnapping and sexual assault. A lawyer for Seligmann has just submitted what he says are time stamped photos showing his client was at an ATM making a withdrawal at the time he says the alleged rape occurred. The prosecution has not responded. Nifong is pressing ahead and says he is looking to charge a third suspect.

Alina Cho, CNN.

(END VIDEOTAPE)

S. O'BRIEN: The new Black Panther party and some residents held a rally on Monday in Durham to support the accuser in the case. They were allowed to march across the Duke campus. Instead, they went to the house where the alleged attack took place. They're calling for that house to be turned into a rape crisis center -- Miles.

M. O'BRIEN: A CNN "Security Watch" now.

The agency created to protect us from terror in the ashes of 9/11 not doing its job. That assessment from Clark Kent Irvin, former internal watchdog for Homeland Security. He's out with a book that claims the agency has not corrected security problems at airports and along the borders, as well as in mass transit systems. He accuses Tom Ridge, the first head of the agency, of focusing on critics rather than terrorists.

Irvin's book, "Open Target: Where America is Vulnerable to Terrorism." We will talk with him early in the 8:00 a.m. hour Eastern time of AMERICAN MORNING, about an hour from now. Be sure to stay tuned to CNN day and night for the most reliable news about your security -- Soledad.

S. O'BRIEN: Really interesting read and really, of course, scary read. Because at the end of the day, the take-away is, yes, we're not really much safer. I mean, we'll talk to him later this afternoon.

A new report out of Iraq says that U.S. forces just missed Abu Musab al Zarqawi, Iraq's most wanted terrorist. Zarqawi, of course, is the leader of al Qaeda in Iraq.

CNN's Barbara Starr is live for us at the Pentagon. Hey, Barbara, good morning to you.

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Good morning to you, Soledad. Well, you know, we've all seen these reports circulate over the last several years in Iraq. Another report circulating. And, of course, it remains to be seen if it's true.

But about two weeks ago, U.S. special forces conducted a raid in a town called Yusufiyah. That's about 20 miles south of Baghdad. They had information that Zarqawi associates might be in the region, and always the possibility that Zarqawi himself might be there. They went to a house; a very nasty fire fight broke out. Five terrorists killed. Five others captured. One was such valuable intelligence his identity has not yet been revealed.

And what sources tell CNN is those detainees told the U.S. troops that Zarqawi was nearby at the time, and that they just missed him. Now, of course, it remains to be seen if all of that is true, Soledad. Because, of course, you only know that Zarqawi is nearby for sure once you actually get him. So, to our best knowledge at the point, the hunt goes on. But another tantalizing report that U.S. troops might have come very close to getting him.

S. O'BRIEN: Yes, I got to imagine, hugely frustrating for the troops, as well. Listen, let me ask you, why so many near misses with this guy? I mean, is he just getting so much support from the people where he's staying? Is it that the U.S. forces just have terrible intelligence on all this? What's the reason?

STARR: Well, he's a very slippery character. In the past, he's been known to change his appearance many times. And he has an -- clearly a support network that helps him move around and avoid capture. But that videotape of him that just came out several days ago is something that intelligence officials are looking at very closely for new hints. They are looking at it frame by frame, they are looking at the weapons that are shown in the background, the people that he is with in that videotape, hoping that it does provide them new clues.

But it is this area, apparently southwest of Baghdad now, where they have stayed several raids by U.S. forces that they have some hope that one of these tips will pan out -- Soledad.

S. O'BRIEN: Barbara Starr at the Pentagon for us. Barbara, thanks -- Miles.

M. O'BRIEN: It's back to work this morning for a million or so immigrants and their supporters who walked out of work and took to the streets yesterday all across the nation.

Carol Costello live in the news room with more on that.

Hello, Carol.

CAROL COSTELLO, CNN ANCHOR: What a spectacle. The biggest turnouts were in Los Angeles and Chicago, but in cities like Atlanta, and cities across Texas, the crowds were smaller than expected. Still, 1 million plus gathered across the country. The question, did they really disrupt business?

(BEGIN VIDEOTAPE)

ANTONIO VILLARAIGOSA, MAYOR, LOS ANGELES: I am so proud to be an American! We are all proud to be Americans today! Fly your flag with pride.

COSTELLO (voice-over): Flag-waving immigrants, legal and illegal, turned out in force for two major rallies in Los Angeles. In all, some 600,000 demonstrators hit the L.A. streets Monday, the city's mayor insisting there's strength in those numbers, saying their voices must be heard.

VILLARAIGOSA: We say to the Congress, listen to us. We are America. We want to be a part of the dream. We love this country. COSTELLO: In Las Vegas, a day and evening of demonstrations with some 10,000 people punctuating the day's massive protest. Many of those at the evening rally worked during the day, and hit the streets after they clocked out.

UNIDENTIFIED FEMALE: We are at a crossroads.

COSTELLO: It was billed as a National Day Without Immigrants, and many heeded the call to flex their economic muscle by staying home from work, from school and out of stores.

UNIDENTIFIED MALE: I think it is important that we do a boycott today to show that we are important.

COSTELLO: A sea of protesters from sea to shining sea. In Chicago, more than 300,000 marched to a rally in Grant Park. Attendance was down as much as 33 percent at predominantly Hispanic schools. In Denver, a two-mile march to the state capital drew more than 50,000 demonstrators.

In New York, protesters formed a series of human chains in the city's five boroughs, then marched to the federal courthouse in Manhattan. In south Florida, several thousand protesters gathered in Homestead, which has a large Mexican community.

And in San Francisco, an estimated 55,000 people took to the streets. Many businesses in the traditionally Mexican Mission District were closed.

UNIDENTIFIED FEMALE: I think the people who come here illegally in order to support their families back home, in order to make a living for themselves, are very brave and noble people. And I admire them enormously.

COSTELLO: But not all immigrants agree with Monday's action. One group spoke out against the mass protests and the reasons behind them.

COL. ALBERTO F. RODRIGUEZ, U.S. ARMY (RET.): We're all here today to tell those illegal protesters, you do not speak for me.

(END VIDEOTAPE)

COSTELLO (on camera): There were several over counterprotests with gatherings as large as 200. As for the impact, we'll see if anything comes out of Congress because of them.

Back to you, Soledad.

S. O'BRIEN: All right, Carol. Thank you very much.

Time for a check of the forecast. Jacqui Jeras is at the CNN Center. She's got the latest for us.

Hey, Jacqui, good morning again.

JACQUI JERAS, CNN METEOROLOGIST: Good morning.

(WEATHER REPORT)

JERAS: Back to you guys.

S. O'BRIEN: Thank you, Jacqui.

Still to come this morning, will all these immigration protests have any real impact on reform measures and reform proposal that are in Congress? We chat with Senator Bill Frist about that topic, and also, that $100 gas rebate. Coming up in just a moment.

M. O'BRIEN: Also, FEMA: on the ropes and on a deadline. Some last-minute hiring with the storm system looming. We'll look at FEMA's plan to stop a brain drain.

S. O'BRIEN: And do Blackberry users have a new reason to worry? Are we losing our e-mail now?

M. O'BRIEN: Say it ain't so.

S. O'BRIEN: Andy Serwer's going to join us.

M. O'BRIEN: I thought we were over this.

S. O'BRIEN: No, no, no. There's a new lawsuit. Tell you about that just ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

M. O'BRIEN: In New Orleans today the mayor will unveil a hurricane plan for the looming storm season -- the bitter lessons of Katrina clearly on Ray Nagin's mind. We're told the plan will include mandatory evacuations using city buses, and no major storm shelters, like the infamous Superdome. Also, Nagin says his disaster plan will not depend on federal help. CNN will have live coverage of the official announcement. It is planned for 12:30 Eastern Time.

Soledad?

S. O'BRIEN: FEMA under fire, of course, in the wake of recommendations to abolish the agency. It's struggling to prepare for the next hurricane season, and also to fill a large number of key jobs. Homeland security correspondent Jeanne Meserve joins us from FEMA's headquarters this morning.

Hey, Jeanne, good morning.

JEANNE MESERVE, CNN HOMELAND SECURITY CORRESPONDENT: Good morning, Soledad.

The success of any organization is about structure and leadership. But just as fundamentally, it is about people. And that's where FEMA is putting a lot of emphasis right now.

(BEGIN VIDEOTAPE) NEW EMPLOYEES, IN UNISON: I will support and defend the Constitution of the United States.

MESERVE (voice-over): This is the new blood -- new hires FEMA hopes will resuscitate the agency.

MIKE HALL, FEMA DIR. OF HUMAN RESOURCES: If we're going to be better tomorrow, than we are today, it all begins with people.

MESERVE: FEMA's people -- or more precisely, a lack of them -- were blamed in part for the agency's bumbling, stumbling response to Katrina. Government reports said a brain-drain in the year's prior to the storm had left FEMA unprepared.

Mike Austin, a 20-year FEMA employee, was one of those who exited. Now he spends his days doing pen and ink drawings.

MIKE AUSTIN, RETIRED FEMA EMPLOYEE: We all want to feel like we're part of a winning team. We want to feel like that what we did, who we were, what we were was important and appreciated.

MESERVE: But Austin didn't. He says politicized leadership, budget cuts and organizational reshuffling drove him and others away.

The barrage of bad publicity since Katrina has further sapped morale, some insiders say, and the exodus of experienced personnel continues.

LEO BOSNER, FEMA UNION PRESIDENT: People now are either on the way out, or a lot of them wishing they had a way out, to be honest with you.

MESERVE: Just last week, at least two high-ranking, veteran employees left the agency.

Although after a long search, a FEMA director has been nominated, many top positions are still open. There is no permanent director of Operations or director of Response or director of Recovery. There are no permanent directors in half of FEMA's ten regions.

Not surprisingly, FEMA is now on a hiring binge.

MICHAEL CHERTOFF, HOMELAND SECURITY SECY: We are on a path now to get about 95 percent of the vacancies filled in the department by June 1.

MESERVE: As of right now, about 85 percent of permanent, full- time positions are filled.

HALL: For every position that we've got advertised, we're getting hundreds of applications. And so I think that we're building a very dynamic workforce.

(END VIDEOTAPE)

MESERVE: FEMA says it hopes to be darn close to making that 95 percent of jobs filled by June 1st, but experts say there's another question. Will those new hires be trained and ready when the first hurricane hits? FEMA's response -- it is trying to hire people with experience. Soledad, back to you.

S. O'BRIEN: Just a mess. All right. Jeanne Meserve for us this morning. Jeanne, thanks. Miles?

M. O'BRIEN: Another headache for the makers of Blackberry. Coming up, Andy tells us whether folks should worry about losing their e-mail again.

And later, a million protesters in the streets. Were they listening in Washington?

And how to deal with the volatile issue of amnesty for illegal immigrants. We'll ask the top Republican in the Senate about that, and we'll also find out why he wants to give you a Benjamin. Stay with us.

(COMMERCIAL BREAK)

S. O'BRIEN: A turn for the worst, and we're not talking about gas prices right now. We're talking this time about Social Security and Medicare. The trustees' annual report has just come out, and it's got bad news. They are predicting that the Social Security fund is going to run out of cash by 2040, Medicare by 2018. Those numbers at least one year earlier than they originally thought. President Bush says that both programs need to be revamped right now -- Miles?

(BUSINESS HEADLINES)

M. O'BRIEN: It looks like the man once called America's mayor may be taking steps to be America's next president? Coming up, we'll tell you what -- about Rudy's excellent trip to the heartland.

And Anna Nicole Smith wins big in the Supreme Court, but she still might not see any money from her late husband's estate. We'll explain, coming up.

(COMMERCIAL BREAK)

M. O'BRIEN: Top stories half past the hour. The Duke lacrosse team should be monitored, but not disbanded. A new report out from the university this morning says excessive underage drinking among team members is at the root of a laundry list of bad behavior, but not racism or sexual assault.

More possible plagiarism by a Harvard student author. Once again talking about that book "How Opal Mehta Got Kissed, Got Wild and Got a Life." Now we're talking about similarities to another novel. It is entitled "Can You Keep a Secret?"

The Homeland Security Agency said to have made the country only a little safer. That's from a new book by the agency's former inspector general, Clark Kent Irvin. He writes of security gaps at airports and other transportation systems, and at borders, as well. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com