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U.S. Military Inadvertently Ships Live Anthrax; FIFA Officials Facing Unprecedented Corruption Probe; Will Russia, Qatar Lose Hosting of World Cup; Storms Kill 35 in U.S., Mexico; Midair Scare on Singapore Airlines Flight. Aired 1-1:30a ET

Aired May 27, 2015 - 01:00   ET

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

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[01:00] ERROL BARNETT, CNN ANCHOR: The U.S. military accidentally ships live anthrax samples. The damage control after a dangerous mistake.

ZAIN ASHER, CNN ANCHOR: The fallout at FIFA, the latest on the massive corruption allegations against top officials at football's governing body.

BARNETT: Also, tornado warnings and flood watches, a powerful weather system moves through Texas.

ASHER: A warm welcome to all of you in the United States and around the world. I'm Zain Asher.

BARNETT: And I'm Errol Barnett. This is CNN newsroom.

Right now, U.S. military and health officials are looking into how live samples of anthrax were accidentally shipped to military installations in the U.S. and to one base overseas. The shipments were part of a research project to develop a test for biological threats.

ASHER: Here is what we know so far. At least two dozen U.S. military personnel are now undergoing precautionary treatments because they may, I want to emphasize the word "may," have been exposed to anthrax. Military labs in nine U.S. states received the live samples, as well. Defense officials say so far no one has shown any signs of exposure.

BARNETT: 22 of the people receiving precautionary treatment are at Osan Air Base in South Korea.

Our Kathy Novak is just outside that air base and joins us live.

Kathy, this is one of the places sent the live anthrax. I'm just curious, when did officials there realize they were dealing with a potentially fatal sample rather than the safe ones they're expecting?

KATHY NOVAK, CNN CORRESPONDENT: Errol, we're learning that it was on Wednesday that emergency personnel at this base in South Korea responded to this incident by destroying the sample of live anthrax that should have been inert. 22 people, as you say, had been working with this live anthrax as part of a training exercise. The facility was immediately cordoned off, decontaminated. And these 22 people so far, we're told, are showing no signs of exposure. But they have gone through testing. They were given antibiotics and, in some cases, vaccinations. But as you know, it wasn't just here in South Korea. These shipments of live anthrax were sent to other places in the United States and there will away serious investigation into how this happened -- Errol?

BARNETT: Most of our viewers will remember anthrax being in the news post 9/11 when it was feared it was being sent to U.S. political officials. But why is the U.S. government still studying anthrax and sending it from base to base? What's being developed?

NOVAK: Well, the fear, Errol, is that it still can be used as a biological weapon. Anthrax is deadly when it is airborne and the purpose of this training is to develop a test in the field to be able to tell if there is, indeed, any threat of this anthrax being used as a biological weapon, which could pose a very serious harm to people that it's used against, Errol. As you mentioned, of course, it has been used in the past. 2001, five people died when anthrax was sent through the U.S. mail.

BARNETT: And it is such a headline for the U.S. to inadvertently send live anthrax, you know, overseas. Not to say even though it's just -- it's bad enough it's sent all over the U.S. How could something like this happen? I know they're looking into it. Is this really as simple as something being mislabeled?

NOVAK: Well, Errol, right now we're told there is this investigation. It seems to have just been a mistake. But if it is a mistake, it is a serious one. This is a potentially deadly substance that is being sent in containers that were only secure for anthrax that should have been inert. They didn't have the same level of security that would have been used to ship live anthrax. We're told that the people who handled this anthrax through the mail should not have been exposed and that there is no threat to the public. But there will be a serious investigation carried out by the CDC and by the Pentagon and all of the labs who may have received this anthrax are thoroughly checking their inventory.

BARNETT: Kathy Novak, outside the Osan Air Base in South Korea where it's just past 2:00 in the afternoon, thanks very much.

ASHER: Want to get out to a story that a lot of football fans must be talking about. The integrity of the organization that oversees the world's most loved sport is now under serious scrutiny. Allegations of widespread corruption have dogged FIFA for many, many years.

[01:05:08] BARNETT: The difference, though, is that now the U.S. Justice Department says it has concrete proof and it is going after top officials. Among them, former FIFA Vice President Jack Warner, who heard the charges against him in Trinidad. FIFA suspended him four years ago pending an investigation and FIFA cleared him.

ASHER: Warner is one of nine officials accused of taking $150 million in bribes over 24 years. Five corporate executives are accused of paying them for media and marketing rights and other crimes.

(BEGIN VIDEO CLIP)

LORETTA LYNCH, U.S. ATTORNEY GENERAL: They were expected to uphold the rules that keep soccer honest and to protect the integrity of the game. Instead, they corrupted the business of worldwide soccer to serve their interests and to enrich themselves.

(END VIDEO CLIP)

BARNETT: Is this timing coincidental? Well, this all comes as FIFA is set to elect its president on Friday. Sepp Blatter has been expected to win a fifth term easily. Blatter, though, has not been indicted, but he was investigated. U.S. officials wouldn't say if he's been cleared. European football's governing body is calling for a delay in the vote.

(BEGIN VIDEO CLIP)

GIANNI INFANTINO, UEFA GENERAL SECRETARY: The members of the executive committee are convinced that there is a strong need for a change to the leadership of this FIFA and strongly believe that the FIFA Congress should be postponed with new FIFA presidential elections to be organized within the next six months.

(END VIDEO CLIP)

ASHER: My colleague, Alex Thomas, is in Zurich and he's been following this story.

Alex, let's talk about Sepp Blatter. The big question is, can he really survive this? He's been the president of FIFA since 1998. He must be nervous. Surely, he must feel the walls closing in. What are your thoughts?

ALEX THOMAS, CNN WORLD SPORTS: Zain, what happened to Sepp Blatter is one of the key questions we've been asking ever since this latest scandal broke. But the lessons of history teach us that he can survive any controversy at all. This is certainly the biggest in the 17 years he's been ahead of FIFA, the world governing body for football, the most popular sport on the planet and he's never had any of the mud stick to him before. But there's real scrutiny on Blatter, more than ever before. And the reason is this. He is saying this is great, we've got two criminal investigations from two different countries because it will help root out corruption in the sport. But what his critics are asking is, why hasn't he done more to root out that corruption himself. He's not only been FIFA president since 1998. He's been at the organization in total since the 1970s. He's been general secretary from 1981 to 1998. He is FIFA. His whole life is FIFA, which is why he's so reluctant to give up the presidency at the age of 79.

ASHER: And it is likely, at least before today, at least before Wednesday, it was like that he was going to win that fifth term. He does seem untouchable. But I do want to move on to the Swiss investigation. They're now

looking into the bidding process for the 2018 and the 2022 World Cups, both in Russia and in Qatar. How likely is it that those countries are now going to lose the right to host the World Cup?

THOMAS: It really is too early to say that. I'm sorry to dodge the question. I would love to give you more of an answer. But there's been scrutiny on those nations ever since they were announced back at the end of 2010, months after a historic first-ever World Cup to be held on the continent of Africa. In South Africa, it went very well. It was a real source of national pride and indeed pride for the whole continent. Football is on a bit of a high. I think we were stunned when Russia and the tiny Middle Eastern nation of Qatar were chosen for the host of those two World Cups. The first time ever, by the way, they were even at the same time, which brought problems itself because there was obviously vote collusion. People were saying I'll vote for you for 2018 if you vote for me for 2022. The American investigation is now suggesting -- it was not focusing on 2018 and 2022. That was left to the Swiss case. But all the details read like a mafia match very from Hollywood. It brings up what does the Swiss have up their sleeves. We know they're in possession of the report compiled by Michael Garcia. There's a whole can of worms. We can't say with any certainty that the World Cups will be taken away from Russia and Qatar, but we can't say for sure it will stay there.

[01:10:09] ASHER: Alex, I remember when Russia and Qatar won the right to host the World Cup, stunning a lot of people, raising their eyebrows at that. FIFA has been accused of being corrupt for many, many years. People are asking, what has taken so long.

Alex, thank you so much.

Errol?

BARNETT: Zain, here is an example of how much money flows through FIFA. It made $2.6 billion from the Brazil World Cup alone in 2014. Now, some of that money was reinvested in the game, leaving FIFA with $338 million in profit for the period from 2011 to 2014. Almost half of that money came from TV broadcast deals worth $2.4 billion over four years. But the costs of running a global operation can add up. FIFA spent more than $100 million on legal matters alone.

ASHER: And you can dig into all of the details on the FIFA story on CNN.com. You'll find more background on who's charged and reaction to the allegations, as well.

Coming up, we'll have more perspective from the executive editor of "World Soccer."

BARNETT: We'll have lots more to say on this story.

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ASHER: Much more on this story.

BARNETT: Here is another big story we're following for you. The U.S. Internal Revenue Service says it now knows who may be behind a major breach that compromised more than 100,000 tax returns. Sources tell CNN the IRS believes it can be traced back to organized crime syndicates in Russia.

ASHER: The thieves allegedly used stolen Social Security numbers and other private information to file for $50 million in fraudulent refunds. An investigation is now under way. Taxpayers whose information was accessed will be offered free credit monitoring.

BARNETT: Now, if you're in the southern U.S., you've already been hit with record rainfall and flooding. The unfortunate part of this is that you could see more of both over the next few days. At least 35 people have died in severe storms in Texas, Oklahoma and in northern Mexico. Several others are missing at this hour. Authorities say they found a boy's body on the banks of a river in Hays County in Texas. They're now working to identify him.

ASHER: Tornados are a major problem. At least 16 were reported in the region on Wednesday. Amid all of this, people are, of course, trying to pick up the pieces.

Here is our Ana Cabrera with more.

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UNIDENTIFIED FEMALE: Oh, no. Got it?

ANA CABRERA, CNN CORRESPONDENT (voice-over): Rushing to the water's edge.

UNIDENTIFIED MALE: 50. And the police are over there. They told us there was one live body in the water coming down this way.

UNIDENTIFIED FEMALE: Yes, OK.

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CABRERA: A nearby worker prepares a rope to throw to someone believed to be in the still tumultuous Blanco River.

(on camera): Are you prepared to make a river rescue of some sort?

UNIDENTIFIED MALE: Yes, ma'am. Yes, ma'am. I was in the Army for six years, combat water survival.

CABRERA (voice-over): Hoping for a rescue while bracing for a recovery. A scene playing over and over as the south copes with several days of widespread flooding. In the end, this one turns out to be a false alarm.

In the hard-hit town of Wimberley, the search continues. 74-year-old Dayton Larry Thomas is among them. Friends are fearing the worst.

(CROSSTALK)

UNIDENTIFIED FEMALE: Yeah. It's tragic, just to know he died, too. We think he died. He's missing.

CABRERA: Gayla McNeal barely made it out of her house --

UNIDENTIFIED FEMALE: Careful.

CABRERA: -- as water raced inside, smashing furniture in every direction.

GAYLA MCNEAL, HAYS COUNTY RESIDENT: This time up to -- just nearly chest deep.

CABRERA (on camera): And you're trying to wade your way through the water?

MCNEAL: Yeah. Waded up to -- my husband's truck was already starting to go down, float down the river and my car was up a little higher so we got in that.

CABRERA (voice-over): Her car was soon surrounded by water. Then the air bags went off.

MCNEAL: I couldn't get out. I was driving and my husband was able to get out on that side. And this man just appeared a pulled me out and -- because I couldn't get out.

CABRERA (on camera): Who was this man?

MCNEAL: His name is Chance. That's all I know.

CABRERA (voice-over): McNeal, like so many others, the clean up and little that is salvageable.

Texas officials say more than $$a000 homes may be damaged or destroyed. And Mother Nature isn't finished. A dam in Midlothian just south of Dallas is threatening to burst, holding tight for now, but more rain in the forecast.

Ana Cabrera, CNN, Wimberley, Texas.

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BARNETT: It's really incredible --

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ASHER: Yeah.

BARNETT: In Texas. In fact, there's been so much in Texas, the Blanco River is spilling over its banks and straight into people's homes.

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[01:15:01] ASHER: Incredible. Take a look at that. A couple shot this video as the water poured into their home. You can see how strong it is, knocking -- I'm not sure if you can see, but knocking over furniture, swirling around the room, gushing in there. Incredible.

BARNETT: Still to come here on CNN NEWSROOM, we'll have more on the massive on surrounding FIFA. Find out what FIFA's president has to say about these unprecedented charges.

ASHER: Also ahead, Singapore Airlines is launching an investigation following a heart-stopping moment during a flight. Details on this close call, coming up.

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ASHER: Welcome back, everyone. OK. This one is frightening. Singapore Airlines is launching an investigation after one of its jets lost power to both engines as it passed through a storm.

BARNETT: People who travel, you think what if I was on this plane?

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ASHER: People who are afraid of flying, like me.

BARNETT: An airline representative says the engines were inspected once the plane landed and nothing unusual was found.

CNN correspondent, Rene Marsh, has details of what was a nerve- wracking flight.

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[01:20:00] RENE MARSH, CNN AVIATION & GOVERNMENT REGULATION CORRESPONDENT (voice-over): Singapore Airlines flight 836 with 194 on board was flying over the South China Sea bound, for Shanghai, when both engines went out. The sudden loss of power at 39,000 feet as the jet liner passed through bad weather. Within seconds, the aircraft dropped nearly 13,000 feet.

MARY SCHIAVO, CNN AVIATION ANALYST: The pilot has to basically put the plane that's now lost the power in its engines in a dive. And that wind going through those engines spins the turbines and helps the pilots get a relight. But even with a relight, getting your engines actually going again, you know, the fuel is burning, you have to be able to sustain those engines. So it's a really tricky maneuver.

MARSH: Singapore Airlines says the problem started about three and a half hours after departing Singapore. They say one engine regained power while pilots worked on the second.

SCHIAVO: It is something that they're trained to do. And in all cases on all planes, there is a point at which the manuals say don't try any more diving restarts, just look for a place to put it down and set it down.

MARSH: This is the latest of several incidents involving Asian Airlines. Flight 235 crashed into a river in Taiwan. In December, Air Asia flight 8501 and Airbus 320, disappeared from radar and crashed into the Java Sea minutes after the pilot asked for clearance to climb in altitude to avoid bad weather. And Malaysia Airlines flight 370 from Kuala Lumpur from Beijing disappeared without a trace more than a year ago.

But as for Singapore Airlines, its safety record is one to brag about. This year, it was rated one of the top-10 safest airlines.

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BARNETT: FIFA's president says misconduct has no place in football and vows the guilty will be put out of the game. This comes after U.S. and Swiss authorities announce corruption investigations into the sports governing body.

ASHER: U.S. justice officials are accusing nine current and former FIFA officials along with five corporate executives of racketeering, wire fraud and money laundering.

On Wednesday, the U.S. attorney general laid out her case against these top football officials.

(BEGIN VIDEO CLIP)

LYNCH: Now, in many instances, the defenders and their conspirators planned aspects of this long-running scheme during meetings held here in the United States. They used the banking and the wire facilities in the U.S. to distribute their payments and they planned to profit from their scheme in large part through promotion of efforts directed at the growing U.S. market for soccer.

(END VIDEO CLIP)

BARNETT: For more on this story, let's bring in the executive editor of "World Soccer" magazine, Keir Radnedge, who joins us from Zurich.

Great to have you once again on CNN.

I'm just wondering now that we had -- we had you on around this time yesterday. Now that we've had a full day to digest the scale of the two investigations under way, I'm wondering what shocked you most, the charges or the speed at which this all came down.

KEIR RADNEDGE, EXECUTIVE EDITOR, WORLD SOCCER MAGAZINE: I think yesterday the shock really was the drama of it. I mean, we have known that there have been investigations ongoing for some time. But the actual -- the practicalities of it, the arrests of people in FIFA's luxury Zurich hotel and the ever changing statements contradictions, counterstatements and statements of confidence emerged during the day and this was a breaking story that just kept breaking and breaking.

BARNETT: And I know it's difficult to predict the future and what will happen, but you would think that the coordination of the multiple raids, the announcement from the Swiss authorities that they'll be pursuing their own investigation, and we see this chart of essentially Sepp Blatter's inner circle falling. All of this would just raise the level of confidence that investigators have that their evidence proves there's corruption within FIFA. Can you see Sepp Blatter or the institution itself remaining unchanged, at least, through all of this?

RADNEDGE: Well, I -- this is the interesting question because, I mean, everyone was gathered together here for FIFA Congress on Friday. I think that's why the cold natured raids and statements and so on took place, because everyone is suddenly here from all over the world. I think whether FIFA will change, I think in some ways is unlikely. I mean, you need the one to go for the others to change. At the moment, the sides are still that FIFA will continue and Blatter himself will be re-elected.

BARNETT: But there is a little bit of friction on that. The European Football Association wants FIFA to delay the leadership elections. Asian football disagrees, though. So would FIFA eventually acquiesce or just act as if it's business as usual?

[01:55:09] RADNEDGE: Basically, what FIFA and what Blatter are doing, really, are trying to maintain business as usual. Because they really don't want to admit or allow any sense that the organization is crumbling. So as far as they're concerned, they're going to try and go ahead and Blatter will focus on the statements from the Asian Federation and the African Federation that he has the support within the wider world beyond the very critical Western or Western European English-speaking Sepp Blatter, if you like, that he has the support to go ahead and carry on.

BARNETT: OK. What about all the football fans out there? What about all the South Africans and Africans who were proud to have a World Cup hosted on their soil? What about those excited for one in the Middle East and in Russia? The allegation that it was all because of a corrupt bribery money taints the entire thrill and love of the sport in general, doesn't it?

RADNEDGE: Yes, it does. I mean, I think we're looking at two separate investigations, as you said earlier. One is the Swiss investigation into the -- into the Russia award which you would say has come comparatively late in the day. The investigation by the American FBI and authorities are much more serious because that does peel back layers and reveal some very, very murky business among people who were very high up in FIFA.

BARNETT: And we understand there may have been some wiretaps and some wires being used and some conversations recorded. So it will all be very interesting to see what the evidence, what the proof is for these serious allegations.

Keir Radnedge, the executive editor of "World Soccer" magazine, thanks for your time from Zurich this morning.

RADNEDGE: Thank you.

ASHER: It will be interesting to see what happens on Friday for FIFA's elections. Will Sepp Blatter get re-elected for his fifth term? We'll see.

We're going to take a quick break here on CNN. When we come back, Iraqi forces are moving forward in their fight against ISIS. Up next, we'll take you to the front line in the battle for Iraq's biggest oil refinery.

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