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Iraq Forces Making Progress Against ISIS; Iraqi Forces Fight to Save Baiji Oil Field; FIFA Arrests Biggest Bush in History; Santorum Announces Run for President; Queen Elizabeth Opens Parliament in Royal Regalia; Volvo Car Safety Demo Goes Horribly Wrong. Aired 1:30-2a ET

Aired May 27, 2015 - 01:30   ET

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

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[01:30:52] ERROL BARNETT, CNN ANCHOR: We appreciate you staying with us. You're watching CNN NEWSROOM. I'm Errol Barnett.

ZAIN ASHER, CNN ANCHOR: I'm Zain Asher.

The headlines at this hour, at least two dozen U.S. military personnel are undergoing cautionary treatments after possibly being exposed to anthrax. Putting two of them at the Osan Air Base in South Korea. Military officials say live samples of the dangerous bacteria were inadvertently sent there and to labs in nine U.S. states. They say there is no risk to the public and so far no one has shown signs of exposure.

BARNETT: The U.S. Justice Department is accusing current and former FIFA officials of taking $150 million worth of bribes over the past 24 years. Five corporate executives are indicted. It's an unprecedented crackdown against the world's football governing body.

ASHER: Iraq says its forces are making progress against ISIS fighters in Anbar Province. Sources claim they have retain the University of Anbar on the southern edge of Ramadi. But U.S. officials say the troops have not entered the city itself. Meanwhile, ISIS militants killed 30 Iraqi soldiers in a suicide bomb attack near Fallujah.

For more on the Iraqi government's fight against ISIS, I want to bring in Ian Lee, who has been following this story from Cairo.

Ian, has the Iraqi government or have the Iraqi army, at least, changed their strategy or stepped up their game after Defense Secretary Ashton Carter's comments this weekend?

IAN LEE, CNN CORRESPONDENT: There was that war of words and a lot of finger pointing about who was at fault for the withdrawal from Ramadi. We've seen some reports, some of the fighters were blaming the upper command, the higher echelons for not giving them the support they needed, also the weapons they needed to keep the fighting going. There have been Sunni tribes who complained about not getting resources, as well. But when you look at the way the ISIS was advancing, the Iraqi forces needed to do something fairly quickly. ISIS forces were trying to create a corridor that connected Ramadi to Fallujah and from Fallujah, you're roughly 40 kilometers from the outskirts of Baghdad. That's something that would just be unacceptable for them. So there was an urgency for them to confront ISIS quickly, to stop their advances. We're seeing that now. We're seeing Iraqi security forces, along with the police, the Shiite militias, as well as the Sunni fighters finally able to push back and start trying to contain ISIS. We have seen that they are moving around. They haven't fully directly engaged ISIS yet. We hear they're trying to cut off their supply lines. They're moving slowly, though, to minimize casualties and minimize damage, as well.

ASHER: Ian Lee live for us in Cairo. Ian, thank you so much. We appreciate that.

Errol?

BARNETT: Zain, to the north, Iraqi forces battling ISIS at a very delicate place, the Baiji oil refinery. It is Iraq's largest. It's critically important. The Iraqis are taking extra care to make sure the refinery isn't damaged and to save it.

Our Nick Paton Walsh reports from the front lines.

(BEGIN VIDEOTAPE)

NICK PATON WALSH, CNN SENIOR INTERNATIONAL CORRESPONDENT (voice-over): This is just a taste of how apocalyptic it could again at the vital Baiji oil refinery already choking on smoke. Part of this huge complex is still head by ISIS. The months-long fight here slowed by fears of the ecological chaos ISIS could reach if they scorch and burn here as they retreat.

Iraqi Special Forces took us to their front line, defending the ruins of a house that a coalition air strike pushed ISIS out of.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

PATON WALSH: They, from the elite golden division. Their Ramadi colleagues part of the troops the U.S. said lacked the will to fight.

[0135:00] (on camera): That line of buildings over there ISIS's closest position. And yesterday during a thick sandstorm here, they used the cover of it to advance within 20 meters of here. When the sandstorm subsided, suddenly a fire fight began.

(GUNFIRE)

PATON WALSH (voice-over): We don't know why they start shooting this day, what they may have seen. ISIS are few in number here, they say, but willing to die. And had a sniper nearby. Or maybe they more want to show us and even Washington they very much do want to fight.

UNIDENTIFIED MALE: (SPEAKING FOREIGN LANGUAGE)

PATON WALSH: "It's not logical and wrong," he says of the American press, "because anywhere, in Ramadi or Baiji, anywhere duty calls, we fight."

(GUNFIRE)

PATON WALSH: Their gunfire grows, and usually it's mortars that ISIS fire back.

(GUNFIRE)

PATON WALSH: So we pull out.

(GUNFIRE)

PATON WALSH: More ammunition, some American is arriving at their base, but the fight will be a slow encirclement, we're told. The reason we want to surround them, he says, is because we cleaned up the area properly with engineers because it has fear of booby traps.

Plenty here of ISIS, a vital part of Baghdad's new plan for Ramadi, but a slow grind. Mindful that Iraq needs something to live off if ISIS ever leaves.

(SHOUTING)

(GUNFIRE)

PATON WALSH: Nick Paton Walsh, CNN, Baiji.

(GUNFIRE)

(END VIDEOTAPE)

BARNETT: Back now to the allegations involving the world's most popular sport. U.S. justice officials are accusing nine current and former FIFA officials along with five corporate executives of racketeering, wire fraud and money laundering over the past 24 years. It's huge.

ASHER: Just to stay credible.

As CNN's justice correspondent, Pamela Brown, reports, some are calling it the biggest sports bust in history.

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PAMELA BROWN, CNN JUSTICE CORRESPONDENT (voice-over): It's the largest governing body for the world's most popular sport, soccer.

(CHEERING)

BROWN: And now FIFA has enough people indicted for corruption to start its own team, one the Justice Department says it organized, widespread and criminal.

LORETTA LYNCH, U.S. ATTORNEY GENERAL: They were asked to uphold the rules, to keep it honest and protect the integrity of the game. Instead, they corrupted the business of worldwide soccer.

BROWN: At this luxury hotel in Zurich, Switzerland, authorities arrested seven FIFA officials as they arrived for their annual meeting. In total, the Justice Department indicted 14 officials.

LYNCH: All of these defendants abused the U.S. financial system and violated U.S. law, and we intend to hold them accountable.

BROWN: Among the charges, racketeering, wire fraud and money laundering.

RICHARD WEBBER, DIRECTOR, IRS CRIMINAL INVESTIGATION DIVISION: This really is the World Cup of fraud. And today, we are issuing FIFA a red card.

BROWN: Events like the World Cup help FIFA bring in more than $2 billion a year. The international event draws top players, top tourism, and top publicity for the host cities and sponsors.

(CHANTING)

BROWN: Now the Justice Department says FIFA officials have used that allure to earn a cool $150 million in bribes for more than two decades. In exchange, it allegedly provided lucrative media and marketing rights to the World Cup, another tournament.

UNIDENTIFIED FEMALE: FIFA worldwide has extraordinary power. This is uber power. We can make a case that this is the biggest sports bust in history. This is historic. This is monumental.

BROWN: So who is among FIFA's least trustworthy team of executives? Vice President Jeffrey Webb is directly accused of using his position to solicit kickbacks. And according to the IRS, top committee member, Charles Blazer (ph), has amassed $11 million in unreported income.

Accusations of corruption have long shadowed FIFA, including holding future World Cups in Qatar and Russia instead of the U.S.

UNIDENTIFIED FEMALE: We were absolutely shocked. Except then we took a deep breath and everyone thought about the oil and the money and the fact that you could open up another part of the world. And everyone kind of shook their heads and said, well, of course.

BROWN: FIFA's provocative president, Sepp Blatter, avoided charges today and is up for re-election on Friday. But U.S. officials made clear today this is just the beginning.

JAMES COMEY, FBI DIRECTOR: The work will continue until all the corruption is uncovered and a message is sent around the world that this conduct will not be tolerated.

(END VIDEOTAPE)

BARNETT: CNN's Justice Correspondent Pamela Brown filing that report.

ASHER: We are going to take a quick break here. When we come back, it is the most colorful event in the British parliamentary calendar. Coming up, details on the queen's annual speech and what the new government has in store. Don't go away.

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[01:43:08] RICK SANTORUM, (R), FORMER SENATOR: I am running for president of the United States.

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BARNETT: And with that announcement, former U.S. Senator Rick Santorum takes his second shot at running for president in 2016, this time around. Santorum won the Iowa caucus in 2012 but ultimately lost the nomination.

ASHER: It's looking increasing crowded in 2016. Opinion polls show Mr. Santorum is at the bottom. He has only 3 percent support in a CNN/ORC poll. Santorum says big government and big business have ruined the American middle class and he intends to change that.

BARNETT: Let's go ahead and take a look at that crowded field that Zain just alluded to. Former New York Governor George Pataki is expected to launch his bid in just a few hours. And he joins, as you see on the left of your screen, 10 other Republican candidates.

ASHER: Hillary Clinton is leading the much smaller pack on the Democratic side. Among those who might run, former Florida Governor Jeb Bush, and business tycoon, Donald Trump.

BARNETT: Queen Elizabeth II formally opened the British parliament in a pomp-filled ceremony on Wednesday. What else would you expect?

ASHER: What else would you expect.

(LAUGHTER)

BARNETT: Dressed in full ceremonial regalia, the 89-year-old monarch delivered her annual speech outlining the government's proposals for the coming year.

ASHER: Most notably, it includes plans for a referendum on E.U. membership.

Here is our Max Foster with more.

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[01:44:37] MAX FOSTER, CNN LONDON CORRESPONDENT (voice-over): A ceremony dating back to the 1300s and dripping in tradition and ritual. Before the queen's arrival at the palace of Westminster, the yeoman of the guard searched the cellars to prevent a terror plot like the one near miss that was masterminded by Guy Fawkes more than 400 years ago. It's the job of this man, Black Rod, to summon the House of Commons to hear the queen's speech. The door slammed unceremoniously in his face to symbolize the independence of the chamber. He doesn't give up, though. And after three knocks, is allowed in before the members of parliament make their way to the House of Lords.

The queen, balancing the priceless imperial state crown on her head, no mean feat in itself, but the real challenge for the monarch is delivering the speech in a way that gives away so little expression that you can't tell her view on any of the policies. It's her job to stay above politics. This speech may be written by her government, but she has no say in it. And this was the headline.

QUEEN ELIZABETH II: My government will renegotiate the United Kingdom's relationship with the European Union and pursue reform of the European Union for the benefit of all member states. Alongside this, early legislation will be introduced to provide for an in/out referendum on membership in the European Union before the end of 2017.

FOSTER: Think of this speech as a wish list for the government, the laws it wants to get through. And top of that list is giving Brits the choice of staying within the European Union, a referendum before 2018.

Then there was Scotland.

QUEEN ELIZABETH II: My government will also bring forward legislation to secure a strong and lasting constitutional settlement devolving wide-ranging powers to Scotland and Wales.

FOSTER: In the election, the people voted overwhelmingly for the Scottish National Party, which wants independence, so Cameron offered a compromise which was more devolved powers. But crucially, he offered the same to Wales and to English regions.

The conservative may have won a majority in the recent election, but it's a slim one. And where the party splits Cameron needs to compromise. He'll be tested on all this when the sovereign delivers her next queen's speech. She'll be in her 90s and Britain's longest- serving monarch. She knows the form.

Max Foster, CNN, London.

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BARNETT: Earlier we told you about the deadly heat wave in India. We want to get more on the conditions there, and also across the U.S. So many serious weather conditions.

We're joined now with Meteorologist Pedram Javaheri.

Pedram, you'll begin with India's ongoing heat wave.

PEDRAM JAVAHERI, AMS METEOROLOGIST: Yeah. It's expanding a little more than this time yesterday as far as the severe nature and extreme nature of the heat. The eastern side of the subcontinent closest to the body of water dealing with the humidity. So the Indian Meteorological Department has put an extreme warning here where the temperatures could easily feel like 100 to 125 Fahrenheit. But you see what the folks in New Delhi are doing. Officials going around with some trucks filled with water helping people get water across this region to help with the extreme conditions ahead of this. The monsoons is one of the most important forecasts in the world. Very much advanced when it comes to getting this is forecasts lined up. The word "monsoon" comes from Arabic world meaning a shift in the wind direction. We have tremendous heat building across the subcontinent. That solar radiation creates a difference in pressure and of course the air temperature warms up far more rapidly over land than over water. We get the flow over the land in the southwest and that brings in the moisture. When it gets here, 70 percent of the rainfall that falls across India happens over a four-month period over this region and some 250 million people, literally comparable to the population in the United States, are farmers in India. It showed you how big of a deal it is. With temperatures above average, being about 156 to 116 Fahrenheit, 41 being what is considered average, it makes a big difference as far as how dangerous the situation becomes. This is the current perspective for where the monsoon moisture is. By the middle of June is when we expect it to push in towards areas of central and northern India. One area of the world, they want the rainfall.

Another area of the world, they want the rainfall to come to an end. You know what's happened across portions of Texas. Some of the latest models show the rainfall might continue for a couple more days. Over 183 rivers at this region at or above capacity. Brings in a couple more inches across into Oklahoma. Certainly not done yet with the flooding in the U.S. -- guys?

BARNETT: Keep our attention there, for sure.

ASHER: Especially with India. We're hearing people have to go without air-conditioning for up to 10 hours a day because of lack of power. Just incredible.

BARNETT: Pedram Javaheri, thanks.

[01:50:04] ASHER: Thank you so much, Pedram.

We're going to take a quick break here. When we come back, a car safety demo goes terribly wrong. Instead of detecting pedestrians, the car plows into them. Oh, boy. We'll explain, coming up.

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Oh, boy. This was pretty embarrassing. It was supposed be a Volvo dealership's training session on their new vehicle's pedestrian detection system, but it did not go quite as planned.

ASHER: It was the worst possible outcome.

Jeanne Moos has more on this safety demo gone wrong.

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JEANNE MOOS, CNN NATIONAL CORRESPONDENT (voice-over): This is how not to train your car dealership staff about a safety system meant to protect pedestrians.

It's OK. No one was badly hurt. No one even went to the hospital.

Staff at this Volvo dealership in the Dominican Republic will probably be a little less trusting of technology, even if it wasn't the vehicle's fault.

This was no evil car with its own mind, like the one in the movie "Christine," mowing down people on purpose.

Volvo is still looking into it, but tells CNN that the dealership apparently thought the car was equipped with a radar and camera system that scans for pedestrians.

[01:55:17] UNIDENTIFIED MALE: I'm going to automatically activates the car full breaking power if the driver fails to respond in time.

MOOS: So what happened with a driver behind the wheel at the dealership.

(on camera): The good news is, according to Volvo, the pedestrian detection system did not malfunction. The bad news is that the car wasn't actually equipped with a pedestrian detection system.

(voice-over): And for thinking it was, when it wasn't, and letting staff stand there, Volvo blames the mishap on human error.

Once during a demonstration for the press, a Volvo's automatic braking system failed. Volvo attributed that to a battery problem.

UNIDENTIFIED MALE: We've had some kind of mishap in the testing here.

MOOS: Others have challenged the pedestrian detection system for laughs.

(SINGING)

MOOS: While even using humans dressed as dummies.

(SHOUTING)

MOOS: But that was nothing compared to the crash course these guys got.

Jeanne Moos, CNN, New York.

(END VIDEOTAPE)

ASHER: That does not restore faith in technology.

Thank you so much, everyone, for watching. I'm Zain Asher.

BARNETT: And I'm Errol Barnett. I'm back with you in an hour. But stay with us. CNN NEWSROOM continues with Rosemary Church, next.

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