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Iran Test-Fires Missiles; Jailed Polygamist Leader Hospitalized; Rev. Jesse Jackson Apologizes for Comments About Barack Obama

Aired July 09, 2008 - 15:00   ET

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


KYRA PHILLIPS, CNN ANCHOR: Testing missiles, testing the world's patience, Iran's finger on the trigger.
DON LEMON, CNN ANCHOR: Plus, millions of dollars in supplies meant for Katrina victims, so, why are they have still empty handed? CNN investigates.

PHILLIPS: And an old tablet sparks a raging new debate and it goes to the heart of Christianity.

Hello, everyone. I'm Kyra Phillips live in New York.

LEMON: And I'm Don Lemon live here at the CNN headquarters in Atlanta.

You're in the CNN NEWSROOM.

And we begin at the top of the hour with news just coming in to CNN right now. This is according to KUSA, which is one of the affiliates, television affiliates, in Denver, Colorado.

Apparently, newly discovered DNA evidence has surfaced in the JonBenet Ramsey case. And that evidence saying that in no way shape or form does the murder case connect JonBenet Ramsey with a family member, including her father, her mother, any other family member.

It goes on to say that they did this new DNA testing. It did not match family members or anyone in law enforcement DNA databases, it goes on to say. Now, apparently, the recent testing was done on a different area of the child's clothing.

It does tell us that the DNA is from a male. But, of course, you remember a number of times police investigators went through various types of DNA testing, different parts of the clothing. This, I am told, or we are being told through 9 News there at KUSA, one of our affiliates in Denver, Colorado, that this testing was done from a different part of the child's clothing, JonBenet's clothing, that came up with these results.

Now, the discovery, we're told, is from a new testing method. And it actually prompted the Boulder district attorney's office to release a letter officially clearing the Ramsey family, including John, Patsy, and their immediate family members, of any involvement in the December 1996 death of 6-year-old JonBenet Ramsey. You will remember JonBenet Ramsey's body was found in the family home in Boulder, Colorado, back just a day after Christmas, December 26, in 1996. Her father had found her body in a room that he said was rarely used by the family down in the basement of the home. The child had been bludgeoned to death.

And then, of course, the long investigation continued, with a number of people coming forward as possible suspects. But now police coming forward with newly discovered DNA evidence saying that JonBenet Ramsey, that the death, the murder case involving the 6-year-old girl in no way, shape or form is tied to that of a family member.

Now, apparently, Lin Wood, the Ramseys' attorney, cannot confirm this information. We have reached out to him. And he is saying he cannot confirm this. So, we're working it more. Once again, the news coming to us from one of our affiliates, KUSA, out of Denver, Colorado.

Now, on to other news. Iran is flexing its military muscle, test-firing long-range and medium-range missiles. It's a warning to the U.S. and Israel: Don't consider even attacking Iranian nuclear sites.

Take a listen.

(BEGIN VIDEO CLIP)

GEN. HOSSEIN SALAMI, COMMANDER, REVOLUTIONARY GUARD (through translator): We want to tell the world that those who conduct their foreign policy by using the language of threats against Iran have to know that our finger is always on the trigger and we have hundreds, even thousands of missiles, ready to be fired against predetermined targets.

We will chase the enemies on the ground and in the sky. And we are able to react strongly to enemy threats in the shortest possible time.

(BEGIN VIDEO CLIP)

PHILLIPS: One of the missiles tested has a range of more than 1,200 miles. That would put Israel, Turkey, the Arabian Peninsula, Afghanistan, and Pakistan within striking distance.

Now, from the White House, strong reaction, as you can imagine. A National Security Council spokesperson says -- quote -- "Iran's development of ballistic missiles is a violation of United Nations Security Council regulations and completely inconsistent with Iran's obligations to the world."

LEMON: We are going to get more reaction now from the State Department.

Our Zain Verjee is there with the very latest.

Zain, what are you hearing? ZAIN VERJEE, CNN STATE DEPARTMENT CORRESPONDENT: Well, Don, the State Department spokesman Sean McCormack says that the tests underline the threat that the world is trying to deal with.

A top American diplomat on Iran is telling lawmakers today that across the map Iran is the biggest problem. Experts say that Iranian missile tests, Israeli military threats, and U.S. rhetoric is dangerous, because it increases the possibility of confrontation.

And there is no direct diplomatic contact between the U.S. and Iran to diffuse any tensions easily. Defense Secretary Gates has also said that the reality is that there is a lot of signaling going on right now. But the fact of the matter is, the bottom line is that nobody wants war.

Gates says that the U.S. is working diplomacy with Iran -- Don.

LEMON: Even with all the pressure, Zain, on Iran, the U.S. is still doing business with Tehran. That's surprising, isn't it?

VERJEE: Yes, it is.

The State Department just announced new financial sanctions against Iranian officials and companies, accusing them of helping develop nuclear weapons. But you're right. And it's surprising to a lot of people that some American businesses are still dealing with Iran.

(BEGIN VIDEOTAPE)

VERJEE (voice-over): The Bush administration is trying to squeeze Iran's economy. At the same time U.S. businesses are boosting trade with Iran. According to U.S. government data, over the past seven years, exports to Iran exploded, from $8. 3 million in 2001 to $146 million in 2007.

ROB SOBHANI, MIDDLE EAST ANALYST, GEORGETOWN UNIVERSITY: The dollar figures are insignificant when you compare it to the hundreds of billions of dollars that the United States trades with the rest of the world.

VERJEE: The biggest exports? Cigarettes, about $158 million over the 7-year period, but also products like vegetable seeds, vitamins, even bras and cosmetics.

SOBHANI: Iranians still love America and America-made products.

VERJEE: Those exports coming mainly from companies in Georgia, North Carolina, Michigan, Florida, and California. A U.S. law passed in 2000 does allow the sale of agricultural goods and medicine to Iran, which partly explains the boost in exports. But, there remain strict limits on what U.S. companies can sell to Iran. Sanctions forbid the export of weapons, airplanes, and any investment in the oil and gas industry and banned business with certain Iranian banks.

ADAM SZUBIN, TREASURY DEPARTMENT: Overall, sanctions against Iran are very, very stringent, with an eye towards putting pressure against the Iranian regime for their support for terrorism and proliferation.

VERJEE: But experts say Iran will continue to try to get around those sanctions.

SOBHANI: There is no doubt that the Revolutionary Guards of Iran are doing everything possible to acquire American technology that will be used against America because of our presence in the Persian Gulf region, in Iraq and in Afghanistan.

(END VIDEOTAPE)

VERJEE: There were reports that Iran had received weapons from the U.S., but that ended up being a typo. Don, those weapons actually went to Iraq.

LEMON: Zain Verjee -- Zain, we appreciate that. Thank you.

John McCain and Barack Obama are calling the Iranian missile test a dangerous situation, but they differ on how far they would handle the threat from Iran. Obama favors direct diplomacy with Tehran. McCain wants to work with European and regional allies.

The Arizona senator had this to say at a campaign stop this morning in Pennsylvania.

(BEGIN VIDEO CLIP)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: But the time has now come for effective sanctions on Iran, which will then -- I believe can have a modifying effect on their very aggressive behavior, not only rhetorically, but in their pursuit of nuclear weapons, as well as this latest missile test. So, lines of communication are fine. Action is what's necessary.

(END VIDEO CLIP)

LEMON: In a statement, Obama says -- quote -- "Iran now poses the greatest strategic challenge to the United States in the region in a generation. As president, I will do everything in my power to eliminate that threat. And that must begin with direct, aggressive and sustained diplomacy."

Here is a closer look at the long-range missile reportedly fired this morning by Iran. It is a new version of the Shahab, which means meteor or shooting star in the Iranian language of Farsi. It can carry a 1-ton conventional warhead. The missile is believed to have been updated with Russian and Chinese help.

PHILLIPS: A big decision from the Pentagon today involving a huge military contract worth tens of billions of dollars. The Defense Department has decided to reopen the bidding for a $35 billion contract to build Air Force tanker planes.

Defense Secretary Robert Gates says that he thinks the new contract can be awarded by the end of the year. Government auditors say serious errors were made when the original bid was awarded to Northrop Grumman. Boeing was the big loser in that original deal. And some members of Congress were also critical of the decision.

Now, under guard and with a fake name, polygamist sect leader Warren Jeffs has been moved from a jail cell to a Las Vegas hospital for an undisclosed medical issue.

CNN's Chris Lawrence is there.

Chris, do we have any idea what the deal is?

CHRIS LAWRENCE, CNN CORRESPONDENT: Well, Kyra, right now, the doctors are still treating Warren Jeffs in the hospital behind me. They aren't talking about what specifically is wrong with him.

We know that it is somewhat serious and serious enough that they would take him out of his Arizona jail cell and airlift him 100 miles here to the hospital in Las Vegas. The big question now as we move forward will be what sort of a mental and physical condition is Warren Jeffs in.

He had already been convicted of using his religious influence over his followers to coerce a 14-year-old girl to marry her 19-year- old cousin. He is serving 10 years to life for that crime out of Utah.

But he was sitting in an Arizona jail facing other charges, four charges of being an accomplice to sexual conduct with a minor. And as we go forward with this latest health scare, the question will be, as prosecutors and defense attorneys look at this, what sort of state of mind is he in and what sort of physical condition is he in? Is he fit to stand trial for these other charges? -- Kyra.

PHILLIPS: All right, Chris Lawrence updating us there from Las Vegas, Nevada -- Chris, thanks.

LEMON: Also, out West, homes burned to the ground. The battles intensify as California continues to burn. Despite the best efforts of firefighters, rubble and ash are all that's left of around two dozen homes in Big Sur. That fire is now 27 percent contained.

Some residents are being allowed back in, if only to check on their property. Farther south, firefighters gained more ground on the Gap fire near Goleta -- 250 homes, though, are still in that fire's path.

And north of Sacramento, a fast-moving fire has residents on the run in Paradise, California. About 14,000 people, more than half the city, have been ordered to evacuate -- 40 homes are already burned there. Four thousand more are threatened.

A short time ago, we were able to get Chuck Rough on the phone. He is not only the town manager, but he also heads the emergency operations center in Paradise. Take a listen.

(BEGIN VIDEO CLIP)

CHARLES ROUGH JR., PARADISE TOWN MANAGER: We have created, on our own initiative, a dozer line about six blades wide. We worked on it all last night on the northeast section of our community. As further protection. And of course, they have got about -- they have got about 60 fire-fighting engines on our ridge alone right now. They're all in staged areas.

(END VIDEO CLIP)

LEMON: At last report, the Butte Lightning Complex fire was 40 percent contained.

Chad Myers joining us now from the CNN severe Weather Center.

Chad, you said this has not been driven by wind. But was this lightning strikes or...

CHAD MYERS, CNN METEOROLOGIST: Well, that is where this all started a couple weeks ago, yes.

This all started when we had some dry thunderstorms. Now, there was some rain. But we called them dry thunderstorms because there was more lightning than there was rain to put out the fires that the lightning started.

And now we just have red flag warnings and heat warnings here all the way from Northern California down even into northern Mexico. That's what that's all about. Wouldn't it be nice to get some of this? This is what heat does in the summertime to the Deep South. You get enough humidity in the air. It's almost like air that you can see. Certainly you can feel the humidity in you as you breathe it.

Well, then the sun comes out and then we pop these storms up. And they are popping everywhere across the South, also a few popping in the North as well. And some of the showers up here, although they don't seem all that severe, and they're not, they are delaying a few airplanes about 30 minutes across some of the Northeast's airports.

Hot day today in Dallas, hot in Houston, but not like it is in Vegas and Phoenix and all of these areas where the firefighters are out there trying to get a handle on these fires.

Now, you have to realize, a couple of weeks ago, we had almost 1,500 fires going because of lightning strikes. Now we're down to nearly 300. They have really made some progress. But look at these acres burned. There are 640 acres in a square mile. So, you're looking at 1,000 square miles burned in California alone -- Don.

LEMON: All right, Chad Myers, thank you, sir -- Kyra.

MYERS: Sure.

PHILLIPS: Together again on the campaign trail, but are Hillary Clinton's supporters buying all the unity talk?

(COMMERCIAL BREAK)

PHILLIPS: A new day dawns at Sunrise Hospital in Las Vegas, where armed guards watch over an infamous patient. The hospital won't identify exactly what went wrong with Warren Jeffs.

(COMMERCIAL BREAK)

LEMON: All right, time now to talk politics.

You see right here this is a live picture of Portsmouth, Ohio. John McCain talking at a town hall meeting. Why don't we listen in to that?

(JOINED IN PROGRESS)

SEN. JOHN MCCAIN (R-AZ), PRESIDENTIAL CANDIDATE: ... town hall meetings with me across this country.

I think it would be very helpful to stop some of the sound bites and some of the surrogates' attacks on one another and all of the things that unfortunately characterize American politics today, that we could just come and stand before you and any other citizen that wants to come and respond to your questions and comments.

Senator Obama has chosen not to do that. I would urge him to consider again and again and again my request to join him.

Before I take your questions, I want to begin by talking about the issue in this campaign that you are most worried about and you worry about all the time, and that's our economy.

All of us know what's happening to the economy. It's slowing. More than 400,000 people have lost their jobs since December. And the rate of new job creation has fallen sharply.

Americans are worried about the security of their current job and they're worried that they and their kids and their neighbors may not find good jobs and new opportunities in the future.

To make matters worse -- and you know this very well -- the price of gasoline has gone over $4 a gallon, and it continues up. I have a plan to grow this economy, create more and better jobs, and get America moving again.

(APPLAUSE)

MCCAIN: I have a plan to reform government, achieve energy security, and ensure that health care is available and affordable to every American.

I believe the role of government is to unleash the creativity, ingenuity and hard work of the American people and make it easier to create jobs.

(CHEERING AND APPLAUSE) MCCAIN: At its core, the economy isn't the sum of an array of bewildering statistics. It's about where Americans work, how they live, how they pay their bills today and save for tomorrow.

It's about small businesses opening their doors, hiring employees, and growing. It's about giving workers the education and training to find a good job and prosper in. It's about the aspirations of the American people to build a better life for their families, dreams, dreams that begin with a job.

There are many things that the next president must do to get our economy running.

LEMON: All right. That is John McCain in Portsmouth, Ohio, having a town hall meeting there. And you heard commenting on the economy, also talking about small businesses. And of course that is a perfect segue now.

We want to go to our deputy political director, Paul Steinhauser, standing by listening to that town hall meeting.

Paul, it appears that John McCain is reaching out to middle- class, working-class people just by listening to that speech.

PAUL STEINHAUSER, CNN DEPUTY POLITICAL DIRECTOR: Exactly.

And look where he's doing it, Ohio, Don. This is such a crucial state. Ohio, it's the state that decided it all in 2004. And that's a state that is going to play a large role again here in 2008. John McCain, you heard him talk about job.s he has been touting his jobs first program this week. That's his plan to create new jobs.

And again, Don, just like you said, it's a pitch to working-class voters. Those voters could be instrumental in Ohio, where he is today, Pennsylvania, where he was earlier today as well. Those states, you are going to see both candidates fighting over big time this summer.

LEMON: All right. We have been seeing Hillary Clinton and Barack Obama several times together. Are Hillary Clinton supporters moving at all towards Obama? Because there was some contention there. People had very strong convictions on both sides.

STEINHAUSER: Yes, good question.

You are going to see them both tonight at this fund-raiser in New York City. We haven't seen them in about a week-and-a-half. It was a week-and-a-half ago they were in Unity, New Hampshire, together.

But asked Americans that question. Are Hillary Clinton supporters -- we asked them specifically, Hillary Clinton supporters -- coming over to Barack Obama? Take a look at these really interesting numbers from our poll. It's been about a month now since Hillary Clinton dropped out of the race. And it looks like Clinton supporters are not moving over to Barack Obama in the numbers we thought that possibly they could be doing. Since June, actually, the number of Clinton supporters who say they're going to vote for Barack Obama has gone down a few points. Also going down is the number of Clinton supporters who say they're going to vote for John McCain.

And the number of Clinton supporters who say, you know what, we're not voting, that number has actually gone up a little bit in the last month -- Don.

LEMON: All right. Hey, you have got all the answer. Thank you very much, Paul Steinhauser, our deputy political director. We appreciate it.

PHILLIPS: Millions of dollars in supplies, they were supposed to help Katrina victims. Instead, the aid ended up out of reach in government warehouses. Now Congress plans to get involved. It's a special investigation you will only see here on CNN.

You're watching CNN, the most trusted name in news.

(COMMERCIAL BREAK)

LEMON: All right, we have this just in to the CNN NEWSROOM. We're just getting it in.

The marathon battle on Capitol Hill over warrantless wiretapping and government surveillance has come to an end. The Senate has passed a new version of the Foreign Intelligence Surveillance Act by a vote of 69-28. The House has already approved the bill. And President Bush is expected to sign it into law.

Now, once it takes effect, FISA will give legal protection to telecom companies that helped the government wiretap Americans after 9/11. It also creates new rules for government eavesdropping. The president plans to make a statement at 4:00 Eastern on the bill's passage. "THE SITUATION ROOM" will carry that for you.

Also, doctors, patients and insurers are waiting for a big Senate vote next hour. Democrats are trying to win over a few GOP colleagues to reverse cuts to what doctors are reimbursed for their Medicare patients.

Last week's vote on the bill fell one shy of breaking a Republican filibuster. A senior Democrat tells CNN his party could -- could get some help this time around. And a source says Ted Kennedy has been discussing a return to Capitol Hill for the vote. But since the senator has been undergoing treatment for brain cancer, a source says Kennedy's return is doubtful -- Kyra.

PHILLIPS: When it comes to the economy, one of the biggest drags is the weak job market. And no one knows more about that than the U.S. secretary of labor.

Our Susan Lisovicz is joined at the New York Stock Exchange by Elaine Chao. Leave it to Susan to find the direct person in charge to ask the direct questions. Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: It's a very popular subject these days.

And, Secretary Chao, it's good to see you again.

ELAINE CHAO, LABOR SECRETARY: Thank you.

LISOVICZ: The U.S. economy lost 438,000 jobs the first half of the year. At least one economist calls that a classic recession signal. What's your forecast for the second half?

CHAO: I think it's going to be much better.

Right now, the unemployment rate is about 5.5 percent. Let's remember that the unemployment rate in the decade of the 1990s was 5.7 percent. Our economy is increasingly transitioning to a knowledge- based economy. So, workers with higher skills and more education are more in demand. And that's what we focus on at the Department of Labor, is to focus on worker training and job training for the higher- skilled work that is developing.

At any one time, we have industries that are leading the world, but are lacking skilled workers. So, we want to make sure that workers who are out of work get the skills, training that they need to access these good opportunities in high-growth industries.

LISOVICZ: But, Secretary, you would have to admit the U.S. economy needs to create at least 100,000 jobs a month just to keep pace with population growth. Can you be more specific about what your department is doing?

CHAO: Sure.

We have a nationwide network of publicly-funded work force investment and employment centers. So, for people who are looking for work, we urge them to please call a toll-free number. It's 1-877-USA- JOBS. And when they call, they will be fielded -- they will be talking to a friendly, compassionate person who will direct them to the nearest one-stop center in their community.

So, we want -- there's a lot of assistance available, and we want to provide that.

LISOVICZ: Secretary Chao, the housing prices has been called the worst since the Great Depression. At that time, the government stepped in and created work programs. Between the housing crisis, between the credit crunch, and record high oil prices, do you think the government should step in again?

CHAO: Well, the government is stepping in, in so many different ways.

(CROSSTALK)

CHAO: That may not have the immediate stimulus effect.

The president signed into law the stimulus package, which puts more than $150 billion right into the economy. And we have seen an uptick in consumer confidence and increased consumer spending because of that.

Secondly, the president has also asked for new reforms, reforms of the Federal Housing Administration. So, we're looking for new reforms that will make sure that what happened in the past will not happen again.

And, third of all, we need to get the energy prices down. We need to develop new sources of energy, because a new -- the high energy prices is a direct tax right on our economy. And it's quite a resilient economy that we have that we're able to have chug forward and still have positive growth in our GDP. So, we're doing a lot of things, and we need to do that.

LISOVICZ: Secretary Chao, you are the longest serving member in -- Cabinet member in the Bush administration. Congratulations on that.

But, unfortunately, that gives much more time to receive criticism. And on one Web site supported by unionized labor, it says that you cut important safety measures in the mining industry and that you failed to force some companies from paying for workers' safety equipment.

How do you respond to that?

CHAO: Oh, that's absolutely not true.

Some of the leaders of organized labor are upset with me because I'm enforcing the law on union transparency. For the first time, we are enforcing the law, which requires labor organizations to file annual financial disclosure forms. I don't care what is on these disclosure forms, but that is a law. And they must comply. So, some people are upset at me for that.

LISOVICZ: Finally, you are ringing the closing bell today, Secretary Chao, for a very important reason. Can you quickly tell us what that's about?

CHAO: Well, I'm here today to talk about the importance of women to invest in themselves and to make sure that they save enough and that they participate in 401(k) programs, if their employer provides it, so that they can have a secure retirement.

A lot of women don't pay attention, of course, because we're the caregivers, you know, and we take -- we take care of others. We don't take care of ourselves. Women live longer. Women have jobs that are more part-time...

(CROSSTALK)

CHAO: So they need to save. LISOVICZ: Therefore we need to save more.

CHAO: Yes.

LISOVICZ: Good advice. Labor Secretary Elaine Chao.

Thanks so much for joining us -- Kyra, back to you.

PHILLIPS: OK. Susan, thanks so much.

And a story that we just brought to you about a half hour ago with regard to that new DNA evidence that came forward in the JonBenet Ramsey case.

We are told that -- or what we had reported earlier was that newly discovered DNA is showing that the murder was not tied, Don, I'm being told, to the father or the -- John -- or the mother, Patsy, or any other family members.

LEMON: Yes. Yes, that's right. And, of course, they said that that DNA was done on a different part of the body and different clothing, as well. And, of course, that was the original DNA testing done back in 1997.

Now, here's according to the DNA -- and, again, CNN has confirmed this. It has prompted the Boulder district attorney's office to release a letter officially -- this is officially clearing the Ramsey family, including Jon and Patsy, of their immediate family in any involvement in that December 1996 death of the 6-year-old girl.

John Ramsey speaking out to our affiliate KUSA moments ago.

(BEGIN VIDEO CLIP)

JOHN RAMSEY, FATHER OF JONBENET RAMSEY: It's hard for people to accept, I think, that someone could come into a home and murder a child from their bed. And we were, perhaps, an answer. It became an entertainment event for a lot of the media, sadly. It boosted ratings, attracted viewers to develop that controversy. But, you know, sadly, there's 2,000 children murdered in our country every year. And for some, reason ours became a very, very public event.

(END VIDEO CLIP)

LEMON: The entire Ramsey family cleared, according to the district attorney, because of new DNA evidence CNN will follow.

Toxic trailers -- who's to blame?

Manufacturers are on the hot seat on Capitol Hill.

Guess who they're pointing the finger at today?

(COMMERCIAL BREAK)

PHILLIPS: I'm Kyra Phillips live from New York. LEMON: And I'm Don Lemon live here at the CNN world headquarters in Atlanta.

That's Kyra. You can hear her in the background. She is live in New York.

You're in the CNN NEWSROOM.

We have a major development in a CNN investigation. The chairman of the committee on Homeland Security announces he will hold an oversight committee hearing this month to find out why FEMA stockpiled millions of dollars worth of new household supplies that were meant for Katrina victims but ended up in the hands of state and federal agencies. CNN's Special Investigations Unit correspondent Abbie Boudreau originally broke this story.

And she joins us now with the latest -- Abbie, what have you learned for now?

ABBIE BOUDREAU, CNN SPECIAL INVESTIGATIONS UNIT CORRESPONDENT: Well, Congressman Bennie Thompson is not only the chairman of the Homeland Security Committee but he also represents the people of Mississippi, including thousands of Katrina victims who still struggle nearly three years after the storm. The congressman told me he plans to hold FEMA accountable for what he calls a bureaucratic mess.

(BEGIN VIDEOTAPE)

BOUDREAU (voice-over): These photos are expected to be the focus of Representative Thompson's Congressional hearing into why FEMA never got millions of dollars of these new supplies to Katrina victims, as intended.

REP. BENNIE THOMPSON (D), MISSISSIPPI: We just think that FEMA needs to come and tell the committee how such a debacle could occur. And, in the process, what are they've going to do to ensure Congress and the taxpaying public that it will never happen again?

BOUDREAU: CNN uncovered that for the past two years, boxes of supplies have sat unused, until FEMA gave them to various states and federal agencies. Thompson not only blames FEMA, but he's also stunned at how Mississippi officials made "a mockery of the whole process."

THOMPSON: I'm disappointed that my state decided that prisoners had a higher priority than Katrina victims.

BOUDREAU: Mississippi was one of 16 states that took the household supplies -- like these -- but gave them to state prisons and other agencies.

(on camera): The State of Mississippi dropped the ball here?

THOMPSON: Oh, no question. Any time items intended for victims of Katrina end up in the hands of the Department of Corrections or state employees, then clearly Mississippi dropped the ball. BOUDREAU (voice-over): We have repeatedly called Mississippi officials to find out why the state didn't give those supplies to nonprofit groups that help Katrina victims, but no one would go on camera. Though we did talk to a spokesperson for Mississippi's surplus agency, Kym Wiggins, who told us: "There may be a need, but we were not notified that there was a great need for this particular property."

Thompson says there is a great need for these basic supplies.

(on camera): So do you think that there might be a way to redirect some of these items to Mississippi?

THOMPSON: Oh, absolutely. If we can somehow find where those items are, I think we can demand that they go to the people for which they were intended. These items were not intended to go to prisons. They were not intended to go to state employees. They were intended to go to victims of Katrina.

(END VIDEOTAPE)

BOUDREAU: A FEMA spokesman tells me the agency always makes itself available to answer questions before Congress and will "send the right people to answer Representative Thompson's questions."

So we're still waiting to find out exactly when that hearing will be, but soon we'll find out.

LEMON: All right. Abbie Boudreau and our Special Investigations Unit on top of it.

Thank you very much, Abbie.

BOUDREAU: Thank you.

LEMON: Kyra?

PHILLIPS: Well, right now about 15,000 families are still living in trailers.

CNN's Sean Callebs has been on this side of the story since day one.

He's joining us with the latest from New Orleans -- Sean.

SEAN CALLEBS, CNN CORRESPONDENT: Yes, how about that?

Couple this with Abbie's excellent report and, really, the Gulf Coast remains a metaphor for misery.

Well, today Congress called in four manufacturers of trailers that came down here after Katrina made land. They were Gulf Stream, Coach, Pilgrim Keystone and Forest River. Now, the reason those four were summoned, because their trailers had significantly higher levels of formaldehyde than any of the other 10 manufacturers who supplied trailers to this area. Now, according to CDC reports, those trailers had significantly higher reports. But those manufacturers say, look, you can't blame us for these levels of formaldehyde.

The reason?

There is no government standard for an elevated level of formaldehyde. Still, back in February, FEMA and the CDC held a news conference down here in New Orleans basically saying anything over 80 parts per billion is harmful. And if have a sensitivity to formaldehyde, it can be extremely harmful, leading to asthma, breathing trouble, sinus trouble, even cancer.

Now, formaldehyde is something found in every single trailer. It's used in the wood production, plastics production. And before the Gulf Stream sent some of its trailers down here, they did some testing of their own. And get this -- they found formaldehyde levels as high as 4,000 parts per billion, yet did not tell FEMA. And that simply enraged one Congresswoman.

(BEGIN VIDEO CLIP)

JIM SHEA, CHAIRMAN, GULF STREAM COACH INC.: We went out and did testing well before this.

ELEANOR HOLMES NORTON (D), D.C. DELEGATE: These were unoccupied trailers about to be distributed to actual human beings on the Gulf Coast.

Did you believe -- if you had to do it over again, would you disclose the information on the 35 unoccupied trailers to FEMA?

SHEA: Anything that would have been helpful to public health in any kind of retrospect on this, we would have -- we would have loved to have been able to shed more light on.

(END VIDEO CLIP)

CALLEBS: Now, Democrats say standards or no standards, the manufacturers should be held responsible for this. However, many GOP members of the committee went on to say look, it's really the government's fault. They should have stepped in and made a level of formaldehyde at issue in this and they simply didn't -- Kyra?

PHILLIPS: We'll keep following the hearings with you.

Sean Callebs live from New Orleans.

Thanks, Sean.

LEMON: New controversy over ancient tablet found in the Middle East. Does it disprove the death and the resurrection of Jesus Christ?

Our Kyra Phillips talks about it in just a bit.

(COMMERCIAL BREAK) PHILLIPS: So did Jesus Christ really walk the Earth and rise from the dead as Christians believe?

Well, a tablet with ancient writings has been discovered in the Dead Sea area and it's raising new questions and stirring quite a new debate. Some scholars say that the three foot tall stone tablet refers to a messiah rising from the dead in three days. And they say it was written decades before the birth of Jesus.

Joining me now to talk about it, Professor Daniel Boyarin from the University of California at Berkeley and also Professor Ben Witherington from Asbury Seminary.

Gentlemen, good to have you both.

Daniel, let's start with you. Do you think it's authentic?

PROF. DAN BOYARIN, UNIVERSITY OF CALIFORNIA AT BERKELEY: Do I think the stone is authentic?

Well, I have very good reason to. I can't say that I'm absolutely certain. But it's been examined by Israeli scholars, both periographers (ph) and the sort of people who work with the actual chemistry of such materials -- the chemistry of ink. And the unanimous conclusion by people who have really no axe to grind is that it is securely dateable to the first century before Christ.

PHILLIPS: All right. You bring up an interesting point, the fact that it's ink on stone versus being chiseled, which is usually what we have seen in the past.

Ben, do you think it's authentic?

PROF. BEN WITHERINGTON, ASBURY THEOLOGICAL SEMINARY: Yes, I think it probably is. I mean, as Daniel says, we can't be absolutely sure about these things. But I mean I've done work with Ada Yardeni, who translated the script itself and she thinks it's genuine. And that's good enough for me.

PHILLIPS: All right. Let's get right into the script, because I want to see what you two make of this and what you think it means.

This is what they've been able to decipher so far with regard to what it says: "In three days, I, Gabriel, the prince of princes" -- and there's a dot, dot, dot -- "narrow holes to for and the to me."

Obviously, a few gaps in there. "Out of the three, the small one whom I took, I, Gabriel, YHWH of hosts, the lord of Israel. Then you will stand in eternity."

All right, Dan -- or Daniel -- tell me what that means to you.

BOYARIN: Well, I want to say that what it means to me is certainly -- you know, I'm not going to say that I'm absolutely certain about this or that anybody can be. But, first of all, I need to add that that's an old transcription. And Professor Knohl of the Hebrew University has, I think, entirely successfully read the word kahla (ph), which means rise or come back to life -- live -- and after the three days. So after three days, live.

Now what this suggests to me is that it's very likely that there was an idea that a leader -- the leader of Israel -- was going to be killed and resurrected after three days, suggesting that the notion of the suffering messiah, the suffering King of the Jews who would die and be resurrected was possibly, maybe even plausibly, an idea that was around among Jews before Jesus came to occupy that job description, as it were.

PHILLIPS: OK. So, Ben, do you see what this says in the same way?

We're talking about the angel Gabriel.

Does this make sense to you?

Does it relate to what we've head in history?

WITHERINGTON: Well, let me say just a couple of things about that.

First of all, there is a nice big lacuna (ph) there after the words "in three days." And I am not as persuaded as Daniel, I guess, is, that Professor Knohl has, in fact, demonstrated that we've got the word hiaykh (ph) there, "to come to life or to live." It may not be so. It may not be so.

But I certainly don't see any reference to death and then coming to life here at all. So that would be one question I would have about this kind of interpretation.

But in general, I don't have any problems with the idea of early Jews, say, reflecting on a text like Isaiah 53 and saying OK, well, maybe a messianic figure is going to die and God maybe will vindicate him beyond death. And it's quite possible that this stone talks about that.

All that that would mean, from my point of view, is, is that Jesus is not the first Jew to talk about a death and a resurrection of a messianic figure. And that's fine by me.

BOYARIN: Exactly.

PHILLIPS: Interesting.

Well, it's interesting. It brings up the notion of was this a premonition or was this an actual Messiah?

Gentlemen...

(CROSSTALK)

PHILLIPS: Unfortunately, we've got to leave it there.

Professor Daniel Boyarin and also Professor Ben Witherington.

Obviously, we could talk about this for a while. It's fascinating. The pictures are interesting. The debate will continue and we'll continue to talk about it.

Thanks, gentlemen.

BOYARIN: Thank you so much.

WITHERINGTON: You're welcome.

PHILLIPS: All right.

We're going to take a quick break. We'll be right back.

(COMMERCIAL BREAK)

LEMON: All right. We have some breaking news that's just into the CNN NEWSROOM.

And we know that this has been a very contentious election year and season.

This is coming to us from the Reverend Jesse Jackson in Chicago. And it concerns Barack Obama, of course, the Democratic presidential nominee there.

OK. So here's the context that we are told from the Reverend Jesse Jackson. The Reverend Jesse Jackson said he was doing an interview and an open mike, a mike that he did not know was open, caused some disparaging comments that he feels was made about Barack Obama and he wanted to make those comments in private. He would not have made them in an open forum.

So here, the Reverend Jesse Jackson said he was in a conversation about Barack Obama and giving moral lectures to the church and to black people. And he feels that Barack Obama has not done that on a broad basis. So he was criticizing Barack Obama in this, but in a private a moment that he would rather have with Barack Obama privately.

Just in to us from the Reverend Jesse Jackson in Chicago. And I'll read as much of it as I can. Of course, we'll be following this on "THE SITUATION ROOM". So bear with me.

It says: "For any harm or hurt that this hot mike private conversation may have caused, I apologize. My support for Senator Obama's campaign is wide, deep and unequivocal. I cherish this redemptive and historical comment -- moment," I should say. "My appeal was for the moral content of his message to not only deal with the personal and moral responsibility of black males, but to deal with the collective moral responsibility of government and public policy, which would be a corrective action for the lack of good choices that often led to their irresponsibility.

That was the context of my private conversation and it does not reflect any disparagement on my part for this historic event in which we are involved and my pride for Senator Barack Obama."

And he goes on to talk about, "It is absolutely there."

No comment from the Barack Obama camp. We've just reached out to them.

Again, we'll be following this on "THE SITUATION ROOM".

But apparently some comments that may seem crude and hurtful made about Barack Obama. The Reverend Jesse Jackson there. We're going to move on now. Again, we'll be following this for you in "THE SITUATION ROOM" -- Kyra.

PHILLIPS: Another story developing right now. We brought this to you about an hour ago. We were able to confirm that apparently some newly discovered DNA evidence in the JonBenet Ramsey case has surfaced. And apparently this DNA evidence does not match any of the Ramsey family members, including John Ramsey, Patsy Ramsey or any other immediate family members. You'll remember, JonBenet's body was found in their family home in Boulder, Colorado back on December 26th, the day after Christmas, in 1996.

Since then, the family has been under fire and grilled for being possibly attached to the murder of their daughter. Lin Wood represents the Ramsey family.

We've got him on the phone now.

Lin, have you been able to confirm this information or not?

LIN WOOD, JOHN RAMSEY'S ATTORNEY: I have been able to confirm it, Kyra.

I received a phone call this morning from John Ramsey informing me that he had received a letter from the district attorney, Mary Lacy, officially clearing him and Patsy Ramsey and their son Burke of any criminal involvement with respect to the murder of JonBenet.

I received a telephone call later in the day from Mary Lacy, the district attorney. She confirmed that, in fact, the letter had been delivered to John. I have received a copy of it. And, in fact, it is an official clearance of the Ramsey family and an apology from the district attorney's office for the fact that they have suffered so many years of being falsely accused.

PHILLIPS: Twelve years, Lin. Twelve years.

WOOD: Twelve years for John and 12 years for Burke. But, sadly, 10 years for Patsy. That's one of the sad notes of today's news...

PHILLIPS: Because of passing away of cancer. Yes.

WOOD: ...because she's not here with us to celebrate the vindication of her family.

PHILLIPS: Well, what exactly happened here? They did a new type of DNA testing, I understand, from a different part of JonBenet's clothing, is that right?

WOOD: That is right. They have DNA evidence that was found in the crotch of her underwear, two spots of blood, that has been known for years to contain DNA evidence, not Ramsey. And they recently had her long johns tested in what I think would be fair to describe as state-of-the-art DNA testing, known as touch DNA testing.

It's been utilized in the United Kingdom for the last few years. It's being utilized more and more now in the United States. Where they go in literally -- here, they took the long johns that she was wearing and they had them tested. They did find DNA on the long johns. And the DNA on the long johns from touch matched the DNA found in her underwear mixed in the blood, which was saliva.

So you have irrefutable evidence that the DNA found on multiple sites on this child's body was, in fact, the DNA of the killer.

PHILLIPS: OK.

So then that leads me to the next question, who is the killer?

I mean does this DNA still not match to anybody else in the law enforcement database -- DNA database?

WOOD: Right. The DNA is in the FBI CODIS database, which is obviously checked on a regular basis when new DNA evidence is submitted. There's a backlog of DNA in the hundred of thousands, in of terms of numbers, in the country. So one day there will be a hit and the DNA will match and we'll know who the killer was.

There was another case in Boulder, Colorado, a young student, Suzanne Chase, who was murdered within the year after JonBenet was murdered. It was only last year, 10 years after her murder, that a random hit on DNA discovered the identity of her killer -- an individual who had never been investigated, never been suspected, but, in fact, was guilty of the crime.

That's what will happen one day with the JonBenet Ramsey case.

What's happened today, though, is irrefutable evidence -- DNA evidence -- has now resulted in John and Patsy and their son Burke being officially cleared with respect to this case. This family suffered too many years, too many heartaches, in terms of being falsely accused of the murder of their child.

PHILLIPS: John Ramsey's attorney, Lin Wood.

Appreciate you confirming that for us.

If you're just tuning in, newly discovered DNA evidence showing that the murder of JonBenet Ramsey is in no way, shape or form, DNA- wise, tied to her father, John; mother, Patsy; or any other immediate family member -- Don.

LEMON: All right, Kyra.

And more breaking news into the CNN NEWSROOM.

And this involves Senator Ted Kennedy. As we know, he has been recovering from surgery for a brain tumor. This video in -- live pictures of the Capitol now. But we also have video of him arriving at the Senate.

What he's doing there, there is a big vote expected on Medicare. Exactly what it is, doctors and patients and insurers are waiting to see how they're going to try to reverse the cuts to what doctors are reimbursed for their Medicare patients.

Democrats are trying to win over, of course, a few GOP colleagues on this. And a senior Democrat told CNN that they could get some help this time around from Senator Ted Kennedy.

And, again, Senator Ted Kennedy did show up arriving on foot today, the first time he has appeared in the Senate since he was out because of brain surgery.

"THE SITUATION ROOM" starts right now.

Kyra, that will do it for us on a very busy news day.

Why don't you do the toss, my friend?

PHILLIPS: Sure.

We'll be back tomorrow.