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Panama Papers Scandals Examined; Wisconsin Primary Today; Brazil Facing Numerous Scandals; First Migrants Deported from Greece; European Authorities Tracking Radical Islamists; Flash Flooding in Pakistan. Aired 3-4a ET
Aired April 05, 2016 - 03:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(COMMERCIAL BREAK)
[03:00:00] ROSEMARY CHURCH, CNN NEWSROOM SHOW HOST: Fallout from the Panama papers as crowds of protesters call for Iceland's prime minister to resign.
Plus, it's primary day in Wisconsin. Ted Cruz and John Kasich are hoping to stop Donald Trump. While Bernie Sanders is hoping to take another win from Hillary Clinton.
And later, an Olympic scale set of crises in Brazil, what political scandals, their economy and the Zika virus emergency are all competing with the summer Games.
Hello and welcome to our viewers here in the United States and all around the world. I'm Rosemary Church. Thanks for joining us here on CNN Newsroom.
There is anger, apprehension and strong denial among some of the global elite right now. A massive document leak appears to expose offshore accounts and Shell companies set up for some of the world's top leaders. The so-called Panama papers came from the Mossack Fonseca law Firm in Panama. That country's president is encouraging a global investigation.
(BEGIN VIDEO CLIP)
JUAN CARLOS VARELA, PANAMANIAN PRESIDENT (TRANSLATED): We are an ally of all countries in the fight or transparency of a country's financial system. And not only our country but all countries in the world. And we welcome any publication any investigation that will protect the financial systems of Panama and the world so that they will not be used for illicit acts at any point.
(END VIDEO CLIP)
CHURCH: In all, 11.5 million documents have gone public. They name at least 12 current or former leaders from around the world, and at least 128 other politicians and public officials are mentioned.
Anger over the papers has spilled into the streets in some places. This was the scene in Reykjavik, Iceland, huge crowds of protesters surrounded parliament and demand their prime minister step down after he was named in the Panama papers.
Bryan Todd has more on what and who is getting exposed.
BRIAN TODD, CNN CORRESPONDENT: It is the first and most startling reaction to new accusations of billions in secret money.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Like you are accusing me of something.
UNIDENTIFIED MALE: No, I'm just asking you question.
UNIDENTIFIED MALE: OK.
(END VIDEO CLIP)
TODD: Money held in secretive bank accounts, kept offshore by world leaders. The Prime Minister of Iceland walking out of an interview. He is one of several world leaders responding with anger and denials of wrongdoing to allegations they hid billions of dollars in Clandestine, offshore companies and accounts.
The International Consortium of Investigative Journalists and more than 100 news organizations spent a year looking through some 11 million documents leaked from a powerful Panamanian law firm which allegedly help set up the Shell companies.
(BEGIN VIDEO CLIP)
GERARD RYLE, INTERNATIONAL CONSORTIUM OF INVESTIGATIVE JOURNALIST: The range of people in the entire data is ranges from everyone from Mafia figures to for all this to prime ministers and presidents.
(END VIDEO CLIP)
TODD: The reports say several friends of Russian President Vladimir Putin operated a secret network which moved at least $2 billion through banks and offshore companies. To be clear, the reports say Putin's name is not on any of the accounts and the Kremlin has dismissed the allegations as, quote, a series of fibs designed to attack Putin.
(END VIDEO CLIP)
WILLIAM POMERANZ, WOODROW WILSON CENTER DEPUTY DIRECTOR: Vladimir Putin, if he needs resources has access to those resources and he has various ways of directly and indirectly suggesting to his friends to give him these resources.
(END VIDEO CLIP)
TODD: One example, Sergei Roldugin is a concert cellist who has been friends of Putin since they were children. The report say Roldugin made hundreds of millions of dollars in profits through those offshore companies.
(BEGIN VIDEO CLIP)
POMERANZ: I think it shows that Mr. Roldugin might be a better investor than he is a cellist.
(END VIDEO CLIP)
TODD: Sergei Roldugin told The Guardian he was connected to those businesses a long time ago, quote "before Perestroika when Russia became more open to the West in the 1980s." The accusations stretched beyond Russia's borders.
Saudi Arabia's King Salman allegedly used the company in the British Virgin Islands to take out $34 million and mortgages for his London homes. There's nothing to suggest that anything the king did was illegal.
(BEGIN VIDEO CLIP)
JONATHAN SCHANZER, FOUNDATION FOR DEFENSE OF DEMOCRACIES VICE PRESIDENT: They may be looking to these offshore accounts as a safer place to hold their money.
(END VIDEO CLIP)
TODD: But the perception inside his kingdom, analysts say, may hurt him.
(BEGIN VIDEO CLIP)
SCHANZER: And I can imagine that the people on the ground in these countries are likely seething as the optics are rather horrible.
(END VIDEO CLIP)
TODD: CNN tried to get response from the Saudi government to the reports. In Riyadh and here in Washington they haven't responded. The Panamanian law firm denies any wrongdoing. It's possible that at least some of the allege corrupt transactions could have used the U.S. financial system which would be illegal under American anti-corruption and money laundering laws.
The Justice Department tells CNN it's aware of the reports, it can't comment specifically about them, but it is looking into them.
[03:05:03] Brian Todd, CNN, Washington.
CHURCH: And I am joined now by Birgitta Jonsdottir, she is a member of the opposition party in the Icelandic parliament. Thank you so much for being with us. Now you are calling for Iceland's prime minister to resign as a result of his involvement and mentioned in this leaked documents. How likely, though, is it that he will be able to withstand the building pressure for him to go?
BIRGITTA JONSDOTTIR, ICELANDIC PARLIAMENT MEMBER: Well, we have already put forward a vote of no confidence. It will be debated either tomorrow or on Thursday. But we are starting to think that it is quite possible that his coalition party or even his own members of parliament might force him to resign before it comes to that.
CHURCH: But what if that doesn't happen? What will likely happen if the prime minister stands firm and refuses to resign? Is this likely to go away anytime soon?
JONSDOTTIR: Oh, no. We have the biggest protest in our history yesterday, and we actually had quite a big protest since the financial collapse in 2008. Yesterday, one could say that people sensed the ethical collapse happening with the political elite.
And frankly, I have never witnessed as incredible masses of people coming to challenge the prime minister and indeed the government, because the protests, protesters were calling for early elections. Because it's not only the prime minister, it's also the finance minister who is the leader of the coalition party, the independence party who has also been in this massive leak.
CHURCH: Yes, and we know the prime minister walked out on an interview he was involved in. But what is your understanding of what the prime minister's involvement is exactly, and whether it's legal or illegal?
JONSDOTTIR: Now, this is the tricky part, you know. And this, these protests and these demands about the prime minister's resignation are not purely about technicalities, because the nature of these tax savings is to use loopholes and do what might be legal, but totally unethical.
So, but in the case of the prime minister's, he was actually on the board and with the tape when the way out for the stakeholders and banks were being hammered out. And he was the only person that actually of both the parliament and anybody else that was involved in figuring out a way for the stakeholders to actually not just pull out all of Iceland's assets were being discussed.
Everybody had to write a disclosure of confidence before they participated in any discussions about these things, except the prime minister. And he, his wife, actually, is one of the stakeholders.
CHURCH: And as we've been talking, we've been looking at these pictures of the protesters. How determined are they? And how well organized are they? Are they all on the same page here?
JONSDOTTIR: It's impossible to say. Like I said, I've never seen as many people show up for protests, but if you look over the crowd and at the signs that people are carrying, it felt that it was a general demand that the prime minister would resign and the government would be dissolved and would have early elections.
But like I said, it's -- I can't speak for all of these people. But it was a beautiful protest. It was actually one of the nicest days of the year, so, many people came and the ambiance of the protests was really good. I really wish I could have spent more time out there with them.
CHURCH: All right. Well, we will certainly keep a very close eye on this story of course developing in the number of parts of the world. Birgitta Jonsdottir, thank you so much for talking with us. We do appreciate it.
JONSDOTTIR: Thank you, Rosemary. Good bye.
CHURCH: To hear Ted Cruz tell it, Wisconsin could be the turning point in the republican race for the U.S. presidency. He holds a 10- point lead over Donald Trump in the latest polls there, with voters set to cast their ballots in the coming hours in the state's primaries.
Trump, Cruz, and John Kasich are all campaigning for last-minute votes. Polls show democrat Bernie Sanders with a slim lead over Hillary Clinton in Wisconsin.
[03:09:58] They have agreed to a CNN debate in Brooklyn on April 14, just five days ahead of the New York primary. Well, Wisconsin is not a must-win state for Donald Trump, but a loss there could shift momentum in Ted Cruz's favor.
CNN's Jim Acosta reports.
JIM ACOSTA, CNN SENIOR WHITE HOUSE CORRESPONDENT: Donald Trump knows the stakes all too well. After a bruising week, a big 'W' in Wisconsin could change everything.
(BEGIN VIDEO CLIP)
DONALD TRUMP, (R) U.S. PRESIDENTIAL CANDIDATE: I've been given the last rites how many times? Like 10? Every week, it's the end of Trump. Then they walk in, sir, I don't know what happened but your poll numbers just went through the roof.
(END VIDEO CLIP)
ACOSTA: While he's scrambling to catch Ted Cruz, who is leading in Wisconsin, the GOP frontrunner is attacking John Kasich, accusing the Ohio Governor of being nothing more than a spoiler.
(BEGIN VIDEO CLIP)
TRUMP: He's lost like 29 or 30 or 31 times. Whatever the hell it is. Every single state and every single island. He ought to get go the hell out. And let me tell you he hurts me much more than he hurts Cruz.
(END VIDEO CLIP)
ACOSTA: Already looking ahead in New York, Kasich's messages for Trump, "don't hold your breath."
(BEGIN VIDEO CLIP)
JOHN KASICH, (R) U.S. PRESIDENTIAL CANDIDATE: Donald Trump said that I need to get out of the race because I'm getting his voters. Well, no, no, I've got news for him. I'm going to get a heck of a lot of his voters.
(END VIDEO CLIP)
ACOSTA: Mr. Trump is also busy mopping his recent message telling the New York Times he made a mistake, re-tweeting an unflattering picture of Cruz's wife. But he is still dominating the headlines with the New York magazine saying is sweaty and spent after wearing a bullet proof at his rallies.
And he raises eyebrows when he predicted over the weekend the country is heading toward a very massive recession. A comment he tried to clean up today.
(BEGIN VIDEO CLIP)
TRUMP: What I said is we're going to go into a massive recession. But I also say if I'm president that's not going to happen, because I'm going to straighten things out.
(END VIDEO CLIP)
ACOSTA: Add to that, Trump's furious attempts to clarify his position on abortion after saying last week women who undergo the procedure should be punished if it's made illegal.
(BEGIN VIDEO CLIP)
TRUMP: Right now the laws are set and that's the way the laws are.
(END VIDEO CLIP)
ACOSTA: The real estate tycoon's team is lashing out at its critics. One internal Trump campaign memo titled "digging through the bull, says America is sick of them. Their idiotic attacks just remind voters why they hate the Washington establishment. Donald Trump won, Washington establishment media, zero.
As for Cruz, he's confident that Trump's stumbles are keeping him in the hunt, especially if the race goes to a contested convention when he wants to hold Kasich the GOP rules requiring candidates to rack up eight wins to qualify for the nomination.
(BEGIN VIDEO CLIP)
TED CRUZ, (R) U.S. PRESIDENTIAL CANDIDATE: There are only two candidates who will have met the threshold. The choice will be between me and Donald Trump.
(END VIDEO CLIP)
ACOSTA: Cruz is trying to capitalize on Trump's weakness among women, blaming him for a national enquirer story that claimed the Texas Senator was being unfaithful to his wife.
(BEGIN VIDEO CLIP)
CRUZ: He's completely made up nonsense. It's simply not true. I have always been faithful to my wife. I love my wife. (END VIDEO CLIP)
CHURCH: For analysis of how the race is shaping up in Wisconsin we turn now to Professor Larry Sabato, founder and director of the University of Virginia Center for Politics.
Thank you, sir, for being with us. Now we saw in Jim Acosta's piece that Donald Trump is really struggling now to catch up to Ted Cruz in Wisconsin. How's Trump likely to go there, do you think, and then of course in New York?
LARRY SABATO, VIRGINIA UNIVERSITY CENTER FOR POLITICS DIRECTOR: Well, Wisconsin has turned into a real battle for the soul of the Republican Party. And it is an opportunity for the anti-Trump forces to prevail. It looks like Trump is going to lose. I say that, not simply because of most of the polls, they're not completely in agreement.
Most of the polls say Trump is going to lose. But also because the key political people on the ground in Wisconsin believe that Wisconsin voters are going to follow their conservative republican governor, Scott Walker, who was once a presidential candidate, and he has endorsed Ted Cruz, mainly to defeat Donald Trump. There is surprisingly little enthusiasm for Cruz. It's mainly an attempt to stop Trump.
CHURCH: Yes, and let's go big picture here. How likely is it, do you think, that Trump will get the 1237 delegates needed? Or do you think a contested convention is likely here? And then we have to ask what role might John Kasich play, given he is so far behind in the delegate count and Cruz and Trump both want him out?
SABATO: Take a coin and flip it. And you'll have your answer about the contested convention. It is very, very close. Now if Trump does indeed lose Wisconsin and lose the lion's share of delegates there, he's going to have to make up that ground someplace.
Now surprisingly, he may make it up quickly, because in two weeks, we have the next primary, the New York primary, and who's the premiere New Yorker at least on the republican side? It's Donald Trump.
[03:15:03] And the New York rules are such that Trump may be able to sweep the board. It will be winner-take-all if he can get over 50 percent. And right now the polls are showing over 50 percent.
CHURCH: All right.
SABATO: But the key point here is that, wherever Donald Trump loses, he is going to have to make up the ground in a subsequent primary. It's clear now this is going to go all the way through the final set of primaries on June 7th, which includes gargantuan California. And that is where we will decide as a country whether this goes to a contested convention or not.
CHURCH: Yes. It is a battle like no other. Then of course on the other side of the political spectrum, Bernie Sanders is confident he will win both Wisconsin and New York. Want to listen for a moment to what he had to say on that very issue.
(BEGIN VIDEO CLIP)
BERNIE SANDERS, (D) U.S. PRESIDENTIAL CANDIDATE: The large voter turnout we will win here, if we win here, we're going to have a bounce going into New York state. Where I think we can win. If we win in New York State, between you and me -- I don't want to get Hillary Clinton more nervous than she already is.
(APPLAUSE)
She's already under a lot of pressure. So, don't tell her this. I think we win here, we win in New York state, we're on our way to the White House.
(END VIDEO CLIP)
CHURCH: So, Larry Sabato, a very confident Bernie Sanders there. How is he likely to go up against Hillary Clinton in both those states? Will he do as well as he thinks he will?
SABATAO: It will be a surprise if Sanders does not win Wisconsin. It is a state tailor-made for him. There's a large youth vote there with many college students voting. There also is a strong liberal tradition, and even a socialist tradition in Wisconsin.
So he ought to win, and he ought to win handily. We'll see whether he's right and the polls are right. The polls suggest he will win. New York is another matter entirely. Hillary Clinton represented New York for eight years in the U.S. Senate.
Bernie Sanders, of course is a son of Brooklyn, New York. So, there you have, in essence, two New Yorkers running against one another. Right now, Hillary Clinton has the edge. Most polls have her about 10 points ahead. I think she will be able to win New York.
CHURCH: And it is worth mentioning that Sanders eventually accepted the April 14th debate date with Hillary Clinton after much resistance that has to be said due to scheduling issues. Now it comes five days before the New York primary.
What impact will that debate likely have? And can Sanders catch up to Clinton overall and give her a run for her money at the summer convention?
SABATAO: You can't ever rule out an embarrassing gaff by one candidate or the other so that it could have an impact. Generally, though, we had so many debates and town halls, I find it difficult to believe that one more will make all that much more difference.
I tend to think here it's a question of organization and also spending. And there is an advantage for Bernie Sanders. He is actually raising more money than Hillary Clinton. And he's raising it in small contributions, which are renewable.
So he has an advantage there. I have to stress, again, though, that in terms of winning the nomination, Hillary Clinton is very, very, very likely to be the nominee.
But the real question is, will she win that nomination from an enthusiastic convention? Or will she have a problem reunifying the party, because the Sanders delegates are unwilling to join behind her? That is yet to be determined.
CHURCH: Yes, still a lot of unanswered questions there. Larry Sabato, always a pleasure to chat with you. Thank you so much.
SABATAO: Thank you.
CHURCH: Let's take a quick break, but still to come, the security net is thrown wide across Europe where officials are chasing down dozens of terror suspects on the lam.
You are in the CNN Newsroom.
[03:20:00] (COMMERCIAL BREAK)
PATRICK SNELL, CNN WORLD SPORT REPORTER: Hi there. I'm Patrick Snell with your World Sport headlines.
The wait finally over for Chelsea fans who now know their club's new manager will be the formal event as head coach, Antonio Conte. Its three-year contract will kick in after he finishes his reign as Italian national team boss at this years' European Football championship in France. He'll replace the Dutch interim manager, Guus Hiddink.
The 46-year-old who also played over 400 games for the EUFA guided the Bianconeri to three straight Serie A titles in 2011 and '14 before taking charge of the Serie A.
A special weekend, too, it was for the 18-year-old New Zealander Lydia Ko who's just become the youngest golfer in almost 150 years to win two major titles. Ko followed up last September at the Evian Championship to lift the opening major of 2016 at Mission Hills to realize that win shot of the last hole setting up the pretty opportunity.
Then the celebrations by jumping into the drink there. Tradition dictates she does that in style.
In the NBA, the Golden State Warriors have kept alive their dream of breaking the regular season wins record after beating the Portland Trail Blazers on Sunday after surprise loss on Friday. Steph Curry and co-bouncing back once again. Curry scoring a game high 39 points, 27 coming from downtown. The Warriors question the Blazers by 25 points, 136 to 11.
Thanks for joining us. I'm Patrick Snell.
CHURCH: European officials are on high alert as they track nearly two dozen radical Islamists with suspected links to ISIS. Some have been connected to the attacks in Paris and Brussels. The exact number of those at large is unclear. And our CNN Pentagon correspondent Barbara Starr reports they could be
anywhere.
BARBARA STARR, CNN PENTAGON CORRESPONDENT: The terror attacks in Brussels and Paris have European and U.S. security officials chasing dozens of ISIS operatives and terror suspects identified as part of a wider terror web, stretching from Europe to the Middle East, including at least eight suspects they believe are linked to the ISIS attacks in Paris and Brussels.
About 18 additional Jihadist, not directly linked to specific attacks but tried in absentia in European courts also on the run. Their whereabouts, unknown. The manhunt underscoring the reach of ISIS from its base in Syria to inspire and to direct attacks in the West, with operatives trained in bombing and weapons tactics.
(BEGIN VIDEO CLIP)
BARACK OBAMA, UNITED STATES OF AMERICA PRESIDENT: We need to do even more to prevent the flow of foreign terrorist fighters. After the Paris attacks, the United States deployed search teams to Europe to bolster these efforts, and we will be deploying additional teams in the near future.
(END VIDEO CLIP)
STARR: Those teams working on border and aviation security in Europe.
(BEGIN VIDEO CLIP)
CEDRIC LEIGHTON, CNN MILITARY ANALYST: ISIS is able to place people whenever and wherever they want to. They are in essence able to create cells when and where they need to create those cells; they are also operationally capable of hiding under the radar.
(END VIDEO CLIP)
STARR: President Obama will begin reviewing options for increased efforts in both Syria and Iraq as the U.S. looks to accelerate its campaign against ISIS.
The U.S. recently bombing a suspected ISIS chemical weapons laboratory at Mosul University, targeted airstrikes increasingly going after top ISIS leadership.
[03:25:07] U.S. Special Operations looking for Fabian Clan, a senior operative involved in planning external attacks. He is believed to be in and around Raqqa.
One military option, additional U.S. Special Forces inside Syria to help local fighters take more ground back, including Raqqa.
(BEGIN VIDEO CLIP)
PETER COOK, PENTAGON PRESS SECRETARY: The big focus would be in Syria, particularly as we look towards Raqqa is doing what we can to enable those local forces to make them even more effective and to be able to provide even more pressure on ISIL as those forces isolate Raqqa.
(END VIDEO CLIP)
STARR: There is also a new U.S. military training program for moderate Syrian rebels. The last program failed in a spectacular fashion. This time, of course, they hope it works.
Barbara Starr, CNN, the Pentagon.
CHURCH: We'll take a break right here. But still to come, more from the Panama papers. We'll show you what the papers appear to reveal about high-level Russian officials.
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CHURCH: You are watching CNN Newsroom. Welcome to our viewers in the United States and all around the world. I'm Rosemary Church.
I want to update you first on the stories this hour.
Major political figures from Argentina to Russia are denying any wrongdoing in response to millions of documents leaked from a Panamanian law firm. The so-called Panama papers allege that secret Shell companies and offshore accounts were used by influential government leaders around the world.
[03:30:05] The prime minister of Iceland is one of the leaders named in the papers. Massive crowds in the streets of Reykjavik demanded his resignation. He insists he is not stepping down.
The papers also allege a Clandestine network closely affiliated with President Vladimir Putin. The Kremlin called the allegations, quote, "a series of fibs."
The first migrants to be departed from Greek under the E.U.'s controversial new plan are now in Turkey. Greek officials say the migrants have not applied for asylum. And for so-called one in, one- out deal, one bettered Syrian refugee will be resettled in Europe for every one returned to Turkey.
Voters in Wisconsin will begin casting their ballots in the presidential primary in just a matter of hours from now. And democrat Bernie Sanders is banking on a huge show of support from college students.
Another factor that could swing support for Sanders, a rule that allows people to register to vote on the same day as the primary.
Sara Sidner went to Wisconsin's largest university to hear what young people are saying.
(BEGIN VIDEO CLIP)
SANDERS: Thank you, Madison! (CHORWD CHEERING)
(END VIDEO CLIP)
SARA SIDNER, CNN CORRESPONDENT: Bernie Sanders, turning up the heat on Hillary Clinton in the battle for Wisconsin. Ground zero for the Sanders campaign? The University of Wisconsin, Madison, with some 43,000 potential voters.
(BEGIN VIDEO CLIP)
AUGUST MCGINNITY-WAKE, COLLEGE DEMOCRATS OF UW MADISON PRESS SECRETARY: You only get one presidential election when you're in college, when you're an undergrad student in college, so this is it for us. This is the one so people are pumped.
(END VIDEO CLIP)
SIDNER: Junior Jackie Spate is so pumped; she's stumping for Sanders on campus.
(BEGIN VIDEO CLIP)
JACKIE SPAIGHT, UNIVERSITY OF WISCONSIN STUDENT: There's never been a political candidate that I agreed with so much on, so it's really cool.
(END VIDEO CLIP)
SIDNER: She's an example of the latest poll results showing among likely democratic primary voters 18 to 29 years old, 8 in 10 pick Sanders.
(BEGIN VIDEO CLIP)
SPAIGHT: It's frustrating to me being told they are not a feminist because you're a woman and you're a Bernie supporter. Because I would love to see a woman president, but I don't really agree with Hillary on everything. So, you know, it's about representation versus policy and politics.
(END VIDEO CLIP)
SIDNER: But down the hill, badgers for Hillary have been working feverishly to tell their peers Clinton's policy show she has what it takes.
(BEGIN VIDEO CLIP)
BRANDON COHEN, UNIVERSITY OF WISCONSIN STUDENT: To me it comes down to experience. She's the most experienced candidate in the race, from senator to Secretary of State. Some people are making really big promises that it's hard to see how they'll come true. And I think we realize that real change comes through, you know, real plans, and I think Hillary is the best candidate. BRIANNA KOERTH, UNIVERSITY OF WISCONSIN STUDENT: Being pro-choice,
Hillary actually pushed legislation through while she was in the Senate, whereas Bernie has kind of had the right stance but I don't think he has been the strongest advocate for me as Hillary has been.
(END VIDEO CLIP)
SIDNER: When it comes to young voters who are under 30 years old, they have a history of showing up here in bigger numbers than in some other states.
(BEGIN VIDEO CLIP)
JOE ZEPECKI, DEMOCRATIC POLITICAL ANALYST: Eight years ago, since 2008 primary, voters age 18 to 29 made up about 17, 16 to 17 percent of the electorate. That's a pretty sizable chunk. I think you might see it a little bit higher than that on Tuesday.
(END VIDEO CLIP)
SIDNER: Wisconsin is one of 11 states, plus D.C., that allows for same-day registration, which tends to increase the number of youth at the polls.
(BEGIN VIDEO CLIP)
SPAIGHT: I think we're expecting a really big turn out. And when that happens we win.
(END VIDEO CLIP)
CHURCH: Sara Sidner reporting there. In neighboring Michigan's primary last month, you might recall Bernie Sanders pulled off an upset victory over Hillary Clinton, winning a whopping 81 percent of the youth vote.
All right. Now on to the Panama papers. The leaked documents that appear to expose offshore Shell companies used by some of the global elite. Russian President Vladimir Putin is not mentioned in the papers, but many Russians are, including a musician named Sergei Roldugin. A close friend of Mr. Putin.
A Russian journalist who examined the papers explains what that might mean.
(BEGIN VIDEO CLIP)
(FOREIGN LANGUAGE)
ROMAN ANIN, NOVAYA GAZETA JOURNALIST (TRANSLATED): Asset turn over in these companies amounts to billions of dollars. The most important detail here is that Roldugin is a musician, so we understand that he could manage this business on his own.
Our guess, supported by many documents is that he kept it for someone else and we suppose that he did so for the head of state. (END VIDEO CLIP)
CHURCH: So, let's bring in CNN money Europe editor, Nina dos Santos who joins us live from our London studios. Hi, there, Nina.
So, Russian President Vladimir Putin not named in these leaked papers, but his close friends are and Moscow is not happy. What has been the fallout so far and where's this all going?
NINA DOS SANTOS, CNN CORRESPPONDENT: Well, you got to remember, Rosemary, that Vladimir Putin at the moment still enjoys record popularity back home in Russia.
[03:35:00] But I must point out that from London where I am, where these allegations have raised all sorts of eyebrows. And let me just remind you exactly what we're talking about. So, Vladimir Putin one of about 12 current heads of state who seem to have their names dredged up as part of this massive download and leak of documents which are crucially important.
A Panamanian law firm called Mossack Fonseca who is primary go according to the allegations that have been made by a number of media organizations, who spent years pouring through these files in many cases. This company was largely set up to try and shield people's really identities from Shell company in offshore tax savings like the British Virgin Islands and also places like Panama in particular.
We're talking about 11.5 million documents here. And one of the things that surrounds Vladimir Putin's inner circle here, as you quite rightly point out, he himself is not explicitly named on any of the papers that seemed to have been us.
But his best friend, one of his oldest childhood friends, a cellist, Sergei Roldugin has been named as part of this. Now allegedly he fronted a particular company that saw around about $2 billion donors funneled through. And this also includes transactions that involved the state and Bank Lucia which may have netted another individual, in particular his name is Yury Kovalchuk.
And so far what we've had is Alexei Navalny, senior key opposition figure in Russia coming out and saying, quote, unquote, "It's been known for some time that there have been allegations of corruptions surrounding Mr. Putin. None of this is particularly new."
But we should also give you the Kremlin's response, because for some time they have been saying ever since last week, trying to pre-empt these allegations coming out, that there was supposed to be according to them, a media attack on the Kremlin. And they've dismissed these allegations as mere fibs.
CHURCH: So, Nina, what all do these leaked Panama papers reveal about how some Russian officials carry out their business?
DOS SANTOS: Well, what's really interesting here, Rosemary, because I spent yesterday working the phones, speaking to people who are legitimate tax lawyers and also jurisdictions. And they say where some of the elected transactions that may have taken place in this company that was fronted, seemingly fronted, allegedly by Sergei Roldugin, are things that they say they haven't seen for years.
So what we're talking about here is loans that were awarded, via allegedly Bank Lucia, the state-run bank, to this particular company that was fronted by Mr. Vladimir Putin's friend that were then written off three months later.
There was another example of a company that bought an asset for $1, a nominal value, and then sold it for hundreds of millions of dollars afterwards. So, there are going to be questions here not just inside Russia but also on a broader, more international scale, about these tax jurisdictions and the murky world of offshore finance.
Because there's one thing legitimately setting up an offshore entity because you do business in other tax jurisdictions and you want to keep your tax affairs mutual for that reason. That is legal.
But funneling money that comes from states, that comes from international sanctions, that should be -- that should be subject to international sanctions, even from the proceeds of crime and also not declaring the assets that you hold in these offshore accounts, those are all things that in many tax jurisdictions are illegal.
So, setting up an offshore entity like this, perhaps even having your friend front it, that is not necessarily illegal, but it depends on whether you actually declare that and what you use that money for. Those are the kinds of questions that are going to be asked of many individuals method in this probe.
CHURCH: Yes. Certainly there's a massive leak and the ramifications across the globe will be huge. Nina dos Santos, joining us there live from London. Many thanks to you.
Well, flash flooding triggered by unusually heavy rains have killed at least 47 people in northwest Pakistan and injured 37 others. Disaster officials say nearly 150 homes have been damaged. One of the affected provinces has announced a relief package for victims.
And our meteorologist Pedram Javaheri joins us with more on this tragic story. And how long will it be before all of that water disappears and people can return to some form of normal life.
PEDRAM JAVAHERI, CNN METEOROLOGIST: Yes. You know, it's going to be a multi-day if not several week event in this region. And you know, when you think about Pakistan, you have to keep in mind the country where the Hindu Kush Mountains to the north, higher elevation to the north, where you said this event occurred. Down to the south of the Arabian sea waters that wanting to flow downstream and eventually go through much of an area where it's is very heavily populated.
So, this will be ongoing on for several weeks. And some of the images, Rosemary, among the most compelling images I've seen all year when you take a look that folks that have impacted across parts of the Peshawar and Pakistan, incredible to see the flooding in place, the expansive nature of the flooding and of course, dangerous scenario as folks try to wade their way across the waters here.
[03:29:59] But population of Pakistan, it is among the most populace countries in our planet, 182 million people. In fact, the sixth most populous country on our planet. And a quarter of that population lives along the Indus River.
And you notice to the north, the Hindu Kush Mountains higher elevations, work your way to the south, lower elevations from Islamabad all the way towards Karachi.
So, the waters are going to eventually make their way downstream. The flooding is going to place. And Pakistan is among the most vulnerable countries in the world when it comes to flooding and flooding fatalities.
In fact, there are number of people that are affected by flooding every year. On average, India has about 4.8 million people that are exposed every single year. And notice Pakistan is in the top five on that list. Sitting at about three quarters of a million people exposed to flooding every single year.
Here comes the front in the last couple of days. The rainfall is also staggering, 100 to 200 millimeters. That is roughly 4 to 8 inches of rainfall that came down in a matter of two days. In fact, if you're watching from Berlin this morning, I appreciate you're doing so.
Look at the numbers. It is literally one third of their annual rainfall in Berlin is what occurred in Pakistan in just two days. Of course, well above their monthly average for that portion of the world.
Take a look at what's happening across the bottom portion of our planet near New Caledonia, Manawatu, Fiji, Tangua, we do have two tropical cyclones that have a high probability of formation. The reason I bring this to your attention is there's been significant flooding taking place in Fiji.
Recall we had cyclone Winston, the strongest cyclone ever to impact this southern hemisphere in February was very much destructive across this region. Just a couple of months ago, this area has picked up several hundred millimeters of rainfall. And as the storms move over the region, we will continue bringing in heavy rainfall around Fiji.
And again, Rosemary, Winston was devastating, it cost about $250 million in losses for Fiji that relies almost entirely on tourism. Of course, there is a lot of damage there in that country right now since (Inaudible).
CHURCH: And Fiji's so very small, so very vulnerable right out there in the middle of the ocean. Many thanks to you, Pedram.
JAVAHERI: Thank you for having me.
CHURCH: I appreciate it.
Well, Brazil is struggling with a number of crises all at the same time with just four months left until they host the summer Olympics. We will bring you the outlook from Rio.
[03:45:00] (COMMERCIAL BREAK)
CHURCH: That is former Brazilian president Luiz Inacio Lula da Silva, leading a rally Monday, defending current President Dilma Rousseff. The embattled leader is trying to ward off calls for her impeachment.
Rousseff appointed Lula as cabinet chief last month. The move set off a wave of legal challenges and claims that Rousseff was trying to shield Lula from a corruption investigation linked to the state-run oil company, Petrobras. Lula denies any wrongdoing.
Well, Brazil has long been considered a country on the rise, but it now faces a number of crises from its economy to its politics and its public health. All that with Rio welcoming fans to the summer Olympics in just four months.
Our Paula Newton looks at Brazil's fragile state of affairs.
PAULA NEWTON, CNN CORRESPONDENT: A stroll on the beach, and at first it seems nothing's changed. Brazil's cliches endure. Its gorgeous beaches, its fun-loving attitude, its image as the country of the future.
But you take a closer look and you wonder what happened. Well, it's a political and economic drama so devastating, it's shattering many of those cliches.
First up, the economy, slashed by Brazil's worse recession in a generation, one that could turn into an all-out depression by year's end. Unemployment is close to 10 percent. Thousands of businesses have closed.
Narciso Hosha (ph) has been running this Rio restaurant and bar for more than a half century. He tells me, "of course, we're living through a crisis, and the scope of it is the worst I've ever seen."
Could things get worse? They just did, with a crushing political drama. Brazilians are outraged by a scandal so sordid it already implicates more than half the country's national politicians in a kick-back scheme allegedly orchestrated by the state-run national energy conglomerate, Petrobras.
And that's not all. Brazilian President Dilma Rousseff is cornered by a budget scandal that could see her impeach within weeks. Her predecessor, Luiz Inacio Lula da Silva once revered as a savior of modern Brazil, also under investigation for kickbacks.
Brazilians are devouring news from Watergate-style wire taps in every corner and premise of their everyday lives.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Thieves.
(OFF MIKE) UNIDENTIFIED MALE: It's sad, but they are thieves.
NEWTON: how can you guys cope? How will you cope?
UNIDENTIFIED MALE: Embarrassing.
NEWTON: Embarrassing. The whole thing?
UNIDENTIFIED MALE: Embarrassing.
(END VIDEO CLIP)
NEWTON: And to crack confidence still further, Brazil is coping with Zika. A mysterious virus stalking the country, one that may cause a devastating neurological disorder in hundreds of newborns.
In Brazil's already challenging favelas, there is fear.
(FOREIGN LANGUAGE)
NEWTON: "We're worried about the situation," she tells me, "and we're trying to cope with it." So, we have a country shattered by economic despair, demoralized by a political crisis and plagued by Zika.
And through all this, in just a few short months, Brazil welcomes the world for the Olympics. So, we went to the museum of tomorrow, an Olympic legacy project. Incidentally, its construction also implicated in the kickback scheme, to find out how Brazilians plan to deal with it all. You're going to put it on pause?
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Yes. Like pause and now Olympic Games, and OK, we all...
NEWTON: Start the circus again.
UNIDENTIFIED FEMALE: Yes. No, it's a mess.
NEWTON: Yes. A mess and a reminder that even with the Olympics coming, Brazilians are struggling to hold on to those classic cliches that once made them so proud.
Paula Newton, CNN, Rio.
CHURCH: Villanova is this year's NCAA men's basketball champion. We will show you the night's biggest highlight, a buzzer beater that will go down in history.
[03:50:00] (COMMERCIAL BREAK)
JAVAHERI: Weather watch time. Meteorologist Pedram Javaheri with you watching a cold pattern the next couple of days across portions of the northeast.
And in fact, a moderating trend that transitions back to another cold trend as we go in towards the weekend. So, certainly April, here going to start out on a chilly note for portions of the eastern corner of the United States. While back to the west raging takes place.
So, you get some warmth that built. But again, notice the seesaw trends here. Go from 9 up to 14, up to 18 in the U.S. capital, and then we drop off rather sharply again as we approach the weekend. So, that will be the theme across that region. And also, watching the disturbance that is rolling in across the northern plains of the United States.
Over the next seven days, don't be surprised if we get some heavy snowfall across the portions of northern Michigan, northern Wisconsin, certainly southern Canada.
So, it's far from over when it comes to getting at least one more round of wintry weather. Winnipeg comes in with about 2 degrees in the afternoon hours. But some morning snow showers transitioning and some snow showers into the afternoon also a possibility across that region.
To the West we go where they're sitting high and dry that pattern expect it's really continue for much of the week for places like Seattle and Portland could be in the 20s by late week. Gorgeous conditions across that region. I believe the city will take some rain here 29 degrees in the forecast, same score out of Nassau and the Bahamas. But it should be on a dry note there into the upper 20s. And you notice Manaus scattered thunderstorms across northern portions of South America.
(COMMERCIAL BREAK)
CHURCH: For the first time since 1985, Villanova won the NCAA men's basketball title, and they did it in stunning fashion. Watch this.
Seconds after UNC had tied it, it looked like the game was headed to overtime, but Villanova's Chris Jenkins had other ideas and sealed it with a three pointer as time expired.
Our Andy Scholes caught up with Jenkins after the show.
(BEGIN VIDEO CLIP)
ANDY SCHOLES, CNN SPORTS CORRESPONDENT: Tell me what was going through your head when the ball came out of your hand.
CHRIS JENKINS, NCAA BASKETBALL PLAYER: You know, every time I catch the shoot, I'm fortunate enough to get a shot, I think they're all going in. So, when my eyes and they are going to foul on that shot, and that shot was no different. I went one-two step and let it go.
SCHOLES: What are you thinking right now; can you believe what just happened?
JENKINS: I just want to meet Charles Barkley. All I know is that guy picked against us, so I just want to say hello.
(END VIDEO CLIP) CHURCH: The fans were out in force around the Villanova campus,
hoping they don't have to wait another 30 years for the next one.
Well, the U.S. presidential election is on fire with candidates yelling, liar!
Jeanne Moos has more on the heavy use of the "L" word throughout the 2016 campaign.
JEANNE MOOS, CNN CORRESPONDENT: Remember, when the "L" word was all about lesbians? Well, in campaign 2016, this is the "L" word on everyone's lips.
(BEGIN VIDEO CLIP)
TRUMP: And then he lies. I never saw a guy lie like this guy.
(END VIDEO CLIP)
MOOS: Trump says it about Ted Cruz and Hillary Clinton.
(BEGIN VIDEO CLIP)
[03:55:00] TRUMP: She lies like crazy about everything.
(END VIDEO CLIP)
MOOS: Hillary says it about the Sanders campaign.
(BEGIN VIDEO CLIP)
HILLARY CLINTON, (D) U.S. PRESIDENTIAL CANDIDATE: I am so sick of the Sanders campaign lying about me. I'm sick of it.
(END VIDEO CLIP)
MOOS: Sanders says it about Trump.
(BEGIN VIDEO CLIP)
SANDERS: But Donald Trump is a pathological liar.
(END VIDEO CLIP)
MOOS: And Trump has turned it into a nickname.
(BEGIN VIDEO CLIP)
TRUMP: I call him lying Ted. He's lying Ted Cruz.
(END VIDEO CLIP)
MOOS: A name even a pro-Kasich super PAC has jumped on.
(BEGIN VIDEO CLIP)
UNIDENTIFIED FEMALE: Many just call him Lying Ted.
MOOS: Making his nose grow.
UNIDENTIFIED FEMALE: Lied about Ben Carson to steal a win in Iowa.
MOOS: Slithering around his neck like a python trying to strangle him.
UNIDENTIFIED FEMALE: If Ted Cruz's mouth is moving, he's lying.
(END VIDEO CLIP)
MOOS: But I tell you no lie when I say the award for most accusations of lying uttered in a single paragraph goes to Ben Shapiro. The conservative commentator trashed Trump after that female reporter was grabbed by the Donald's campaign manager.
(BEGIN VIDEO CLIP)
BEN SHAPIRO, DAILYWIRE.COM EDITOR-IN-CHIEF: Look, lying liars lie, and this is the Trump campaign where liars are told and then lies are told to cover up the lies. And then finally, new lies are told in order to cover up the lies that were made about the lies.
(END VIDEO CLIP)
MOOS: Nine "L" words sort of make the missed one shattered to President Obama by republican congressman.
UNIDENTIFIED MALE: You lie!
MOOS: Seems quaint. But when it comes to the most egregious untruths.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Pants on fire. The 2015 PolitiFact lie the year goes that the collective misstatements of Donald Trump.
(END VIDEO CLIP)
MOOS: For campaign song of 2016, we nominate the castaways hit from 1965.
It looks like we're going to need a bigger hose.
Jeanne Moos, CNN.
(BEGIN VIDEO CLIP)
SANDERS: Pathological liar.
TRUMP: Biggest liar.
(END VIDEO CLIP)
MOOS: New York. CHURCH: And we'll leave you with that. Thanks for watching. I'm
Rosemary Church. Early Start is coming up for our viewers here in U.S. For everyone else, stay tuned for CNN Newsroom with Hannah Vaughan Jones in London. Have a great day.
[04:00:00] (COMMERCIAL BREAK)
