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American Morning

Bitter Battle on Capitol Hill; Suicide Bomb Attack on Shiite Mosque in Baghdad

Aired June 16, 2006 - 08:00   ET

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


MILES O'BRIEN, CNN ANCHOR: A bitter battle on Capitol Hill as lawmakers go toe to toe over the issue of William Jefferson and the raid on his Capitol Hill office. The question is should that evidence be used in a court of law?
For the rest of us -- let's move on in the video department here -- for the rest of us, the question of how much power the police have to barge into our homes. We'll tell you how a no knock raid just got a Supreme seal of approval.

CAROL COSTELLO, CNN ANCHOR: A phony cancer patient uses donations to buy a big screen TV and a tropical vacation. Now it's gotten her a one way trip to prison.

Also, a serious wildfire warning out West this morning. We'll tell you which state is waving the red flag.

CHAD MYERS, CNN METEOROLOGIST: Looking at the Atlantic this morning, not much to show you here. A calm weekend when it comes to the tropics.

All that and more on this AMERICAN MORNING.

O'BRIEN: Good morning to you.

I'm Miles O'Brien.

COSTELLO: And I'm Carol Costello in for Soledad.

O'BRIEN: On Capitol Hill today, a showdown over the congressman who had $90,000 in bribe money in his freezer. Louisiana Congressman William Jefferson already taken to task by fellow Democrats. They video him off the Ways and Means Committee because of bribery allegations. But that still has to be ratified by the full House.

After finding the money in the freezer, the FBI raided Jefferson's House office, much to the chagrin of many lawmakers. There's another story ongoing today on that.

Now, Jefferson says he's innocent and he has not been indicted. But this may deflate Democratic efforts to use corruption issues against Republicans in the mid-term election.

Which brings us to our congressional correspondent, Andrea Koppel, who's live for us on Capitol Hill this morning -- good morning, Andrea. ANDREA KOPPEL, CNN CORRESPONDENT: Good morning, Miles.

You know, the House Democratic leader, Nancy Pelosi, has said this is not about proof that could be upheld in a court of law, this is about upholding the highest ethical standards. She had been trying for weeks to convince Jefferson to voluntarily, temporarily step aside until the FBI investigation was complete.

Jefferson refused. When that happened, Pelosi took it to her rank and file, which met behind closed doors last night for over three hours. It was emotional. Some members, including Jefferson, accusing Pelosi and others of a double standard, of singling him out because he is black.

But when push came to shove, ultimately, the Democratic Caucus supported Pelosi by a vote of 91-61.

(BEGIN VIDEO CLIP)

REP. NANCY PELOSI (D-CA), HOUSE MINORITY LEADER: Passing judgment on your peers is very, very difficult. But it is necessary. And I said to my colleagues, I said I know you wish this would go away. I did every day I served on the Ethics Committee. But it isn't and I'm very proud of the Caucus for the decision they made.

REP. WILLIAM JEFFERSON (D), LOUISIANA: We have three rules in -- four rules in the Caucus that deal with discipline. And each of them deals with a case where a member is indicted. And in each of those cases, it deals with the member stepping aside if he is a ranking member or a chairman, or if that person is in leadership.

There are no rules that discipline members in any other way, by leaving a committee.

(END VIDEO CLIP)

KOPPEL: Now, the next step is for this to be voted on by the entire House of Representatives. That could come, Miles, as soon as today, but we don't have word on that yet -- Miles.

O'BRIEN: All right, let's go back to that point I alluded to a few moments ago. Democrats had been hoping to use a so-called culture of corruption as an issue against the Republicans this year.

Does this undermine that strategy completely?

KOPPEL: Absolutely. That was a -- that was really the mantra that Nancy Pelosi had been using to hammer away at Republicans for months upon months. Obviously this was an embarrassment for the Democratic Party. For the first time, they feel they're within striking distance of taking back control of the House in November.

Pelosi felt this had to be dealt with quickly so that she could then turn -- shift the attention back on the issues she feels are going to help the Democrats win control in November -- Miles.

O'BRIEN: Andrea Koppel on Capitol Hill.

Thank you very much -- Carol.

COSTELLO: New this morning, a suicide bomb attack on a Shiite mosque in Baghdad, a mosque that has come under attack before. At least people killed, more than two dozen wounded. All of this going down despite rigid security restrictions.

Let's get right to Baghdad and CNN's Cal Perry -- tell us more, Cal.

CAL PERRY, CNN CORRESPONDENT: Well, good morning, Carol.

We understand, at this point, from Iraqi police, at least 11 people are dead, another 25 wounded. They're telling us that the bomber, a suicide vest bomber, was able to penetrate the walls of the mosque itself, blowing himself up inside the mosque about an hour before noon prayers.

As you said, all of this coming less than 48 hours after the prime minister puts on a show of force. Over 70,000 security forces on the streets of Baghdad behind me. They've set up vehicle checkpoints. A vehicle curfew ended about an hour ago.

This mosque was hit exactly 10 weeks ago to the day. In that attack, over 70 people were killed and 100 wounded -- Carol.

COSTELLO: Cal Perry live in Baghdad for us this morning.

O'BRIEN: Happening in America this morning, the disaster agency FEMA says it will accept the $200 check from Hooters. The restaurant chain offered to ribs FEMA for that bottle of Dom Perignon bought at a San Antonio restaurant with hurricane relief money meant for Katrina victims. The Government Accountability Office says the champagne just one example of hurricane bogus spending. It includes things like strippers and even a sex change operation to the tune of a billion dollars.

A deadly ending to a high speed car chase in Memphis. Police said it began Thursday morning when they spotted a dark Honda. Apparently it was hijacked. You'll see what happened there. The driver led them on a 30-minute chase. You just saw the crash that ended it. A woman passenger in the Honda was killed. Four others were injured.

Young teenagers now have the legal right to walk down the aisle in Colorado. A state appeals court ruling a 15-year-old girl can enter into a common law marriage. The ruling overturning a lower court decision. And the minimum age could be as young now for 12 for girls and 14 for boys.

Police in Laconia, New Hampshire says this man's alive, or, actually, he's alive thanks to his neighbor. Twenty-nine-year-old Gene Batchelder was replacing an oil filter in his car on Monday -- there's the hero -- when it fell off the jack. His neighbor heard a faint cry for help. That's when she sprang into action. (BEGIN VIDEO CLIP)

SANDRA AVELLINO, SAVED NEIGHBOR: I came running out and, you know, I jacked -- I had to jack up the car again and pull him out. And I looked at his chest and he had big bolt indentations in his chest.

(END VIDEO CLIP)

O'BRIEN: Ouch!

Batchelder said he'll never get under a car again. Good advice.

In Massachusetts, a former special education teacher headed to prison. She scammed friends -- friends -- out of more than $35,000, pretending she had cancer.

The story from Jim Boyd of our Boston affiliate, WCVB.

(BEGIN VIDEO TAPE)

JIM BOYD, WCVB CORRESPONDENT (voice-over): Twenty-seven-year-old Heather Faria stood silently, staring straight ahead as the words determining her fate echoed throughout the courtroom.

UNIDENTIFIED JUDGE: It is the order of the court that you be punished by confinement to the House of Correction for a term of two years committed.

BOYD: The former special education teacher pleaded guilty to larceny and fraud. She had played on the sympathies of those who cared about her, telling them in 2003 she had stomach cancer and had to choose between buying either food or expensive treatments.

TED HAHN, TEACHER: And she took money from the kids. She took money from the teachers. Teachers walked up and gave her cash, said that she could, you know, help survive. And here she is in one of the islands having a great party.

BOYD: Her attorney says Faria initially believed she did have cancer, after her doctor spotted a lump on her arm. But even after learning otherwise, she continued to accept up to $37,000 in charity.

CHERYL MARSHALL, FARIA'S COLLEGE ROOMMATE: I could never understand why she didn't let me visit her in the hospital. Now I know that it is because she never was hospitalized.

BOYD: Faria admits deceiving her friends. She says that she spent the money on a vacation in St. Martin, on jewelry and a giant screen TV.

ELAINE PHANEUF, CANCER SURVIVOR: I've never seen any remorse. I've never seen or heard a sorry or nothing. Nothing.

BOYD: But Faria did have supporters. "HELEN," FARIA'S AUNT: She is not a bad person. She's always been a wonderful child. And everybody at the school loved her as a teacher.

UNIDENTIFIED COURT OFFICER: All rise.

BOYD: Faria resigned from Dighton-Rehoboth High School in June of last year, after her deception became known.

(END VIDEO TAPE)

O'BRIEN: That report from Jim Boyd of our affiliate in Boston, WCVB.

We thank them for that.

Heather Faria will be eligible for parole in about a year and she will have to pay back the $37,000.

COSTELLO: She'll have to sell that big screen TV she bought.

This is a critical time for 10-month-old twins separated by surgery. Regina and Renata Salinas Fierros are in serious but stable condition in the first day following 22 hours of surgery. The girls were joined from mid-section to pelvis. They shared several organs. Doctors are confident, though, about their full recovery.

(BEGIN VIDEO CLIP)

DR. JAMES STEIN, CHILDREN'S HOSPITAL: We expect to spend a lot of time with the girls over the next few years. That may involve future surgeries, as we mentioned. It will certainly involve physical therapy. But our expectation is that they will recover from this completely and go on to lead very, very normal lives.

(END VIDEO CLIP)

COSTELLO: There were 80 people on the surgical team. Children's Hospital in Los Angeles won't say what the operation costs, but it will be covered by a state health program.

O'BRIEN: Firefighters in New Mexico-have their hands full. A huge wind-driven brush fire near Albuquerque there. Huge flames engulfed the lush wooded areas on both sides of the Rio Grande. There you see some pictures.

Reporter Annie McCormick with our affiliate KRQ -- yes, KRQE. That is it. I'm sorry about that.

Annie?

She's live now at the command center.

Bring us up to date.

ANNIE MCCORMICK, KRQE CORRESPONDENT: Well, Miles, we're outside the command center, which is just outside of Albuquerque, New Mexico. Firefighters have been fighting this fire since it started just after 6:30 last night.

Now things are, there are some good news because the fire is pretty much contained. We've just found that out within the hour.

Now, if you take a look at the video from last night, it gives you an idea of the strength of this fire. This fire is happening in an area that we call the Bosque. Now, in that area, there's very thick, heavy brush. Right now New Mexico-has two hurdles. One of the hurdles is that we have been under a drought for some time now and the conditions of the trees in that area makes it very brittle, very dry conditions. That makes it such a fuel to this fire to keep burning.

Now, right now, the fire is about at 150 acres.

One other hurdle that firefighters have is the wind. In fact, right now they don't know what the cause of this fire is, but they do know the reason why this fire has traveled is because of heavy winds that has made it spread.

Now, right now there are also about 40 homes that had evacuated last night. Now, right now those were all voluntary evacuations. There was also a major interstate that was closed. Now, right now those people are going to be able to return soon. Firefighters are saying that they're hoping to get a better idea of how this fire will end up happening throughout the day.

One thing that they do have to keep their eye on is winds. That is how they will get a better idea of knowing when this will be 100 percent contained -- Miles, back to you.

O'BRIEN: Annie McCormick with our affiliate KRQE.

Thank you very much.

Let's get a check of the forecast -- Chad Myers, any relief for them in the Albuquerque area?

MYERS: No. No, absolutely not. It's going to be another bad day. Yesterday was extreme conditions. Today still critical, but not quite as bad as yesterday. The relative humidity will get down to about 10 percent in the afternoon and the winds will kick up again. Right now, the winds are only six miles per hour, so that's some good news this morning. Firefighters actually try to get handles on the fires in the morning hours when the winds do die off. But then the winds pick up again in the heat of the day, as those winds kind of get up into the jet stream and blow some more of that wind back down toward the ground.

(WEATHER REPORT)

COSTELLO: Coming up, a CNN exclusive.

We'll take you inside one of the world's biggest private military contractors. Find out why they say sometimes they can get the job done better than the military.

O'BRIEN: Also, Senator Edward Kennedy will join us live in the studio. We'll ask him about the fight over Iraq on Capitol Hill, among other things.

COSTELLO: And this Father's Day, how about focusing on dear dad's health?

We'll tell you how the cliched necktie could help save his life.

Stick around.

(COMMERCIAL BREAK)

O'BRIEN: Here's a story you'll see only on CNN -- the shadowy world of contract warriors, mercenaries in Iraq. About 25,000 private military contractors are currently on the ground, doing jobs once performed by American soldiers.

Nic Robertson with a look inside a highly sensitive and secretive industry.

(BEGIN VIDEO TAPE)

NIC ROBERTSON, CNN CORRESPONDENT (voice-over): The company has never let a TV crew in like this before. Blackwater Vice President Chris Taylor escorts us around. He shows us police officers shooting on a practice range. On mock ships, Blackwater trains sailors in force protection after the bombing of the USS Cole in 2000.

UNIDENTIFIED MALE: OK, the RPG when the vehicle...

ROBERTSON: Would-be private military contractors train to defeat insurgents.

UNIDENTIFIED MALE: Accomplish the tasks

CHRIS TAYLOR, VICE PRESIDENT, BLACKWATER USA: What we're on now is the country's largest tactical driving track.

ROBERTSON (voice-over): 2.6 miles. Custom built. Training here matches daily realities in Baghdad.

TAYLOR: We're going to do a little slalom work here. Again, imagine that you've been attacked and now you're weaving in and out of traffic to get your principal off the X, to get to a safe zone.

ROBERTSON: Blackwater is the brainchild of camera-shy multi- millionaire Eric Prince.

After 9/11, business boomed. They've just built a brand new headquarters.

(on camera): I see the gun-barrels on the doors.

TAYLOR: Yes. ROBERTSON: That's a nice touch.

TAYLOR: A little bit of the Blackwater motif.

ROBERTSON: And here it is, as well, Blackwater.

(voice-over): War time demands allowed them to expand. They're now the second largest employer in northeastern North Carolina.

TAYLOR: Right -- 8,000 square feet in the original building ; 64,000 square feet here.

ROBERTSON (on camera): That's a big expansion.

TAYLOR: It's a rather big expansion, but it's needed. Certainly we've left room for growth.

ROBERTSON (voice-over): Growth, because Taylor believes Blackwater has a bright future.

TAYLOR: There's opportunities all over the world. Where we think that we can make a very big impact immediately is in peacekeeping operations.

ROBERTSON: The protection of innocents in Darfur, Sudan is just one of the global hot issues the company says it is ready to tackle. It's so committed to expansion in new markets, Blackwater hired 30- year CIA veteran Cofer Black, who for years headed the U.S. hunt for Osama bin Laden.

COFER BLACK, VICE-CHAIRMAN, BLACKWATER USA: My company could deploy a reasonably small force under the guidance and leadership of any established national authority and do a terrific job.

ROBERTSON: As vice-chairman of Blackwater, he's using his global contacts to search out new, lucrative contracts. And not just in the realm of peacekeeping. The company is developing airships for surveillance.

In the aftermath of Hurricane Katrina, heavily armed Blackwater protection teams were among the first on the scene.

TAYLOR: If you notice, the hull is in a V-shape.

ROBERTSON: And, frustrated by the high U.S. troop death toll from roadside bombs, Blackwater has built a prototype for an armored alternative to the Humvee.

The company says it can assemble hundreds of battle ready men, a small private army, at a moment's notice.

TAYLOR: Those companies that limit themselves particularly to providing only security services will be increasingly challenged over time.

(END VIDEO TAPE) O'BRIEN: you can see more of Nic's exclusive reporting on the private contracting industry -- mercenaries -- in a half hour special only on CNN THIS WEEKEND, 10:00 p.m. Saturday, 5:00 p.m. Sunday Eastern times.

COSTELLO: Also, a special on CNN this weekend.

CNN national security correspondent David Ensor takes an exclusive look at the building of the case for war in Iraq and what went wrong and sort of pieces together the chain of events that led to the faulty intelligence. And he examines the roles played by key players in the Bush administration and the intelligence community.

"CNN PRESENTS" "DEAD WRONG: INSIDE AN INTELLIGENCE MELTDOWN" Saturday and Sunday at 8:00 p.m. and 11:00 p.m. Eastern.

A big surprise from Bill Gates. The software billionaire to give up his day to day role at Microsoft. We'll take a look at what the future holds for him.

Plus, flashbacks of that NBA arena brawl. We'll see what sparked the melee.

That's ahead on AMERICAN MORNING.

(COMMERCIAL BREAK)

COSTELLO: It was a stunning announcement from the world's richest man. Microsoft founder Bill Gates will give up the day to day running of his company after a two year transition period.

CNN's Ali Velshi joins us with why.

ALI VELSHI, CNN CORRESPONDENT: This is too much of a cliche to believe, really, when you think about the Bill Gates story, Carol.

This was a skinny, geeky kid who dropped out of his junior year at Harvard to start up a business writing software before most of us knew there were computers. But that was back in 1975 and clearly a whole has changed since then.

(BEGIN VIDEO TAPE)

VELSHI (voice-over): Bill Gates is America's foremost entrepreneur. But back in 1980, just 25 years old and in business just five years, history knocked on his door.

IBM chose his little software company to supply an operating system for something called the personal computer.

Six years later, Microsoft went public, making Gates the world's first software billionaire, and later, the world's richest man.

By 1999, Bill Gates was worth more than $100 billion.

His success and gnus made him a hero to some. But to others, Microsoft had become the evil empire, unfair and anti-competitive. In 1998, Microsoft was charged with using its size and power to stifle competition.

Gates stepped aside as CEO in 2000, but stayed on as chairman. And he remains the company's biggest shareholder. It sounded a lot like retirement back then. So at the ripe old age of 50, is he retiring again?

BILL GATES, MICROSOFT CHAIRMAN: The change we're announcing today is not a retirement. It's a reordering of my priorities.

VELSHI: Last year, Gates was named one of "Time" magazine's Persons of the Year for his charitable work. He and his wife Melinda run-the world's biggest philanthropic organization. Gates has donated more than half his fortune to it, and that's where he'll turn all his attention when he leaves Microsoft.

Back in March, I spoke to him about one of the foundation's goals -- improving the quality of education worldwide.

(BEGIN VIDEO CLIP)

GATES: Virtually all the jobs in the future will require college type education. And so the whole shift in the economy means it's not just the Microsofts and Orbitzes (ph), it's every job in this economy will require that. Education is a complex topic. It's one of the two focuses my foundation has. It's something I'm very passionate about.

(END VIDEO CLIP)

VELSHI: There are 10 billion shares of Microsoft out there. You might own a few of them in your 401K or your IRA, and if you don't, you probably own or work at one of the billion computers that run- Windows.

What does this change mean to you?

Probably nothing. You're just watching another piece of history unfold.

(END VIDEO TAPE)

VELSHI: And that's probably what it comes down to. Not a lot of changes at Microsoft to be expected. But it is a little piece of history that we're a part of.

COSTELLO: Well, here's something I heard, and you can tell me if it's true or not, but Bill Gates was sort of slow to, I don't know, be more creative and those at Microsoft kind of wanted him out so they could better compete with Google.

VELSHI: And there is Google. And there are these other threats out there that weren't there when Microsoft was this young, energetic, only game in town. And one of the things that Microsoft has to worry about are those employees and those engineers and those people who gravitated around Bill Gates and this creative force. Now, the new Microsoft is a qtr of a trillion dollar company. It's a really big company. All of these shares, all of these computers. And it's going to be interesting to see how it stays energetic, young and forceful.

COSTELLO: I know you'll be watching it.

VELSHI: I absolutely will.

COSTELLO: Thank you, Ali.

O'BRIEN: Still to come on the program, this Sunday is Father's Day. Not many shopping days left.

Do you know what you're getting dear old dad?

Hint, hint, hint -- a necktie. Well, actually, that tie could be a good idea. We'll explain how it could save a life.

And Senator Ted Kennedy in the house with his dog. That's another issue. We're also going to talk about more important and weighty matters, as well -- the Iraq withdrawal and the Democratic divide on the issue.

Stay with us.

(COMMERCIAL BREAK)

(BEGIN VIDEOTAPE)

UNIDENTIFIED CNN CORRESPONDENT (voice-over): On this edition of Vacations Off the Beaten Path, money saving tips for a European vacation.

DONNA ROSATO, WRITER, "MONEY" MAGAZINE: We found one of the best ways to save on a European trip is to buy a package deal, where you have your air fare, your hotel and even a rental car bundled together in one package.

Another great way to save is to fly to an alternative airport. If you're going to London, instead of Heathrow, try Stansted. If you're going to Italy, instead of flying to Rome, try Milan. You can save up to 20 percent, 30 percent on the cost of your air fare.

If you're traveling with your family or a larger group, rent a villa or an apartment. It's less expensive than paying for a hotel room.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

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