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Secret Service Chief Grilled on Capitol Hill; Airman Arrested for Trying to Join ISIS; Netanyahu Challenger Herzog Battle for Votes; Netanyahu Bringing Arabs to the Polls; DNC Chair Speaks. Aired 1-1:30p ET

Aired March 17, 2015 - 13:00   ET

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

WOLF BLITZER, CNN ANCHOR: But here in Washington, an astonishing admition today from the head of the US Secret Service. Joe Clancy was grilled on Capitol Hill over yet another scandal at his agency -- this time, over allegations drove their car to the White House, after a night of partying, and may have even interfered with a possible crime scene. Under questioning, and it was intense, Clancy admitted it was five days before anyone told him about the incident. And he only found out about it through an anonymous e-mail.

(BEGIN VIDEOTAPE)

REP. HAROLD ROGERS (R), KENTUCKY: You're in charge.

JOSEPH CLANCY, DIRECTOR, U.S. SECRET SERVICE: Yes, sir.

ROGERS: This is an administrative problem you've got, among other things. Why did you not get word from your subordinates about this incident for, what, five or six days?

CLANCY: Yes, sir. Not knowing all the facts. First of all, you're right, Mr. Chairman. There is no -- at the least of the description of these events, I should have still been informed of what transpired that evening. Anytime you have a senior level on the president's detail who is alleged to have even come through a secure area as he did that evening, I should have been informed. And we're following up on that. And there will be accountability.

(END VIDEOTAPE)

BLITZER: Strong admission from the secret service director. CNN's Chris Frates was watching this morning's hearing. He's here with me now. It was supposed to be a pretty routine hearing but it turned out to be anything but routine because they really got into this so-called culture of the secret service.

CHRIS FRATES, CNN INVESTIGATIONS: Well, that's right, Wolf. And this was a huge theme of this committee hearing. Democrats and Republicans hammered Director Clancy asking him, what took so long? And here we have Democratic Congresswoman Nita Lowery grilling the director.

(BEGIN VIDEO CLIP)

REP. NITA M. LOWEY (D), RANKING MEMBER, HOUSE APPROPRIATIONS COMMITTEE: We're not talking about someone drinking at a party. We're talking about a respected member of the secret service who was absolutely drunk. How many people do you know -- how many friends have you -- do you know who may go to a party and then take a car and go ram it into a fence or some other barricade? I find this testimony shocking following up on my colleague. I just don't understand it.

I would think it would take five minutes to change the culture. Before you even know the fact, you can say, based on the allegations, if, in fact, you are not aware that this kind of activity is inappropriate for a member of the secret service, you better get it now and go find another job. That's why I'm so puzzled. I can't believe you said it will take time to change the culture.

(END VIDEO CLIP)

FRATES: So, palpable frustration there from Congresswoman Lowey. And that was pretty much the rigor for the rest of the committee, Wolf. Remember, this is just the first month that the director is in his new job. A real tough start here on Capitol Hill today.

BLITZER: Did we get any other specific details of what actually happened that night? Supposedly, these two secret service agents, one of them number two on the president's own detail, if you will. They were out partying, celebrating the retirement of one of their colleagues. And then they heard about this investigation of what was going on and drove over to the White House. We know -- we know what was reported but did we get the facts from the director today?

FRATES: We did get some facts. Now, a lot of these facts he referred to the independent inspector general who he's turned this investigation over to. But he did tell us a little bit about that ramming of the barricade. If you remember, it was reported that these secret service agents rammed their car into a barricade around an active investigation.

And we learned today that instead of really ramming that barricade, what we saw was the secret service agents nudge some cones out of the way, drive around that active investigation, which puts this in a little bit different of a light. So, we did get some -- we did get some new testimony from Clancy today that backs up what we were hearing here at CNN from our law enforcement sources last week.

BLITZER: Chris Frates, I know there's a lot of other questions that are going to be -- have to be answered. And we will work on that. Thanks very, very much.

I want to go to CNN's Justice Correspondent Pamela Brown. We're getting breaking news, Pamela. What are we learning? A former member of the U.S. Air Force was stopped in Turkey and may, repeat may, have been trying to join up with ISIS. What are you learning?

PAMELA BROWN, CNN JUSTICE CORRESPONDENT: That's right. According to this recently unsealed criminal complaint, Wolf, this man, by the name of Tairod Nathan Webster Pugh, who was a U.S. citizen and former member of the United States Air Force was allegedly trying to travel to Syria through Turkey to link up with ISIS. And then, as this complaint says, fight violent jihad.

In reading through this complaint, what happened was, apparently, he allegedly flew from Egypt into Turkey. Turkish authorities stopped him there, sent him back to Egypt. He was, then, deported to the United States and then arrested here in the U.S. He was in the Air Force. And while he was there, he received training in the installation and maintenance of aircraft engine navigation and weapon system.

And then, according to this complaint, Wolf, after leaving the Air Force, this defendant worked for a number of companies in the U.S. and in the Middle East as an aviation's mechanic. He apparently worked on airplane engines which is, obviously, something that is very concerning if these allegations do turn out to be true, that he was trying to link up with ISIS and fight -- and fight violent jihad, as the complaint says.

<13:05:22> Agents did see some of his electronic devices, his computers, his phone. And in it, in the complaint, it says that there were several searches related to Syrian cities near the Turkish border that were controlled by ISIL. That this -- that Pugh, apparently, was looking for ISIS propaganda online. He -- that he searched for the flames of war, the 55-minute ISIL propaganda video. And that he also downloaded, as recently as December, a video of ISIS members executing prisoners by lining them up and shooting them in the head.

We did reach out to Pugh's attorney, and he says that he plans on -- that his client plans on pleading not guilty, when he appears in the eastern district of New York courtroom planned for tomorrow -- Wolf.

BLITZER: Just to be precise. He's here in the United States, back in the United States.

BROWN: He's back here.

BLITZER: He was deported from Turkey to Egypt, back to the United States. Is he in jail now? Is he out on bail? What's going on?

BROWN: That's right. He's behind bars and he's expected to face a judge and, as I said, plead not guilty, according to his attorney, sometime tomorrow. So, authorities arrested him as soon as -- actually, the day after he returned on U.S. soil in New Jersey. He was a resident of New Jersey, apparently.

And we know he did live overseas for a period of time. He lived in Kuwait. In Kuwait, he was an airplane mechanic. He also, apparently, lived in Egypt for an amount of time. But the bottom line is this is a U.S. citizen who was in the United States Air Force and was an aviation's mechanic here in the U.S. and overseas -- Wolf.

BLITZER: A very disturbing development. We'll stay on top of it. Pamela Brown reporting the news for us. Thank you.

Other important news we're following. Election Day in Israel. Will the prime minister, Benjamin Netanyahu, survive a very tough challenge or will his main rival, Isaac Herzog, prevail? And what will the outcome of the election mean, both in Israel as well as here in the United States, indeed around the world?

The prime minister, Netanyahu, released a YouTube video today accusing his opponents of bringing what he called huge amounts of Arabs to the polls to vote against his Likud party. His main challenger urged voters to reject Netanyahu's campaign of, quote, "despair and disappointment."

Let's bring in our Global Affairs Correspondent Elise Labott. She's joining us from Tel Aviv. She's over there at Netanyahu campaign headquarters. Elise, what's the very latest? What are we hearing?

ELISE LABOTT, CNN GLOBAL AFFAIRS CORRESPONDENT: Well, Wolf, I just spoke to some Netanyahu campaign officials just moments ago, and they feel that these statements that Prime Minister Netanyahu has been making, really trying to energize the right wing base, is working, is giving them some momentum.

And they feel that tonight they'll be a little bit better than they have been the last few days. You know Prime Minister Netanyahu has been behind in the polls and, in the last few days, has made this campaign push, making some very controversial statements, backing away from his longstanding position to support a Palestinian state saying if he was prime minister again, it would never happen.

Today, talking about those Arab parties and those Arab voters. And these officials feel that this is working. He is sending a message to every right wing voter, Wolf, saying, I need you, come out and vote.

BLITZER: But Israeli Arabs, they are citizens of Israel. They have every right to vote, Elise. And what he's suggesting is simply a scare tactic if -- correct me if I'm wrong. What's wrong with Israeli Arabs who are full citizens of Israel going out and voting?

LABOTT: Well, it's clearly pandering and fear mongering, Wolf. These are Israeli citizens, 1.6 million in Israel of Arab descent, and they're gaining until polls. I mean, what's really ironic here is that the foreign minister here, Avigdor Lieberman, tried to have this law where if you don't meet the threshold, these Arab parties could be kicked out. So, for the first time in history, they united.

And they -- they're shaping up to be maybe the third biggest party in parliament. And now, Prime Minister Netanyahu sees them gaining in the polls, sees that this could help the left gain enough support for a coalition. And he is saying to this right wing electorate, listen, you don't want the Arabs taking over. Foreign minister Lieberman came out this morning and warned about ISIS and Al Qaeda opening up in Israel.

So, clearly, this is sending a message to those right wing voters that are very sensitive to these issues, that they need them to come out and vote -- Wolf.

BLITZER: The polls close in Israel 10:00 p.m. local time, 4:00 p.m. here on the east coast. Exit polls, by Israel television, will be emerging the seconds after those polls close. We'll have live coverage coming up here on CNN. So, stick around for that. Elise, thank you.

<13:10:03> Much more coming up on the Israeli elections. We're taking a closer look at what they mean for the country's future, the future relationship with the United States.

We'll also hear from Congresswoman Debbie Wasserman Schultz. She's chair of the Democratic National Committee. She's here with me. We'll discuss that and more when we come back.

(COMMERCIAL BREAK)

BLITZER: Relations between the United States and Israel seemingly took a serious hit earlier this month when the Israeli prime minister, Benjamin Netanyahu, accepted an invitation to speak before a joint meeting of the United States Congress. Now, the question is how those relations could change based on the outcome of today's Israeli elections.

Let's discuss this and more with Florida Democratic Congresswoman, Debbie Wasserman Schultz. She's the chair of the Democratic National Committee. Congresswoman, thanks very much for coming in.

REP. DEBBIE WASSERMAN SCHULTZ (D), FLORIDA: Thanks, Wolf. Great to be with you.

BLITZER: The U.S.-Israeli relations -- the relationship between President Obama and Prime Minister Netanyahu, pretty awful right now, right?

SCHULTZ: Well, I think you have to remember that regardless of the personalities involved, the U.S.-Israel relationship remains as strong, if not stronger, than ever. In fact, when the prime minister spoke before the Joint Session of Congress a couple of weeks ago, he emphasized how appreciative he was of President Obama's leadership, his support for Israel. And so, no, I don't think the -- on the contrary, I think the U.S.-Israel relationship has never been stronger. And --

BLITZER: Well, let's take a look at it.

SCHULTZ: Sure.

BLITZER: The president of the United States refuses to meet with the prime minister who comes to Washington. I don't know if that's ever happened before. There is -- they don't even talk to each other right now. That -- a lot of your Democratic colleagues, members of the United States -- one of your predecessors, Senator Kaine of Virginia, former chair of the Democratic Party, he boycotts the invitation. He doesn't even go to that meeting when the -- when the prime minister is speaking. That's pretty awful, right?

<13:15:02> SCHULTZ: Two separate issues.

BLITZER: It underscores a pretty serious strain in U.S.-Israel relations --

SCHULTZ: No.

BLITZER: When so many of your fellow Democrats are boycotts the prime minister of Israel.

SCHULTZ: No. First of all, President Obama followed longstanding presidential practice, which is that as it gets close to an Israeli election, or any election, the president doesn't meet with the candidate that's --

BLITZER: So you blame the prime minister for accepting that invitation?

SCHULTZ: No, actually, I blame Speaker Boehner, because Speaker Boehner violated protocol by extending that invitation not only without -

BLITZER: But the prime minister didn't have to accept. He could have at least consulted with the - with the president.

SCHULTZ: Well, it was a violation of longstanding protocol when the speaker invited the prime minister to speak to a joint session. Not only not notifying the White House, but actually not telling the truth in sending a letter to the prime minister saying it was extended on behalf of a bipartisan leadership, which was not true because Nancy Pelosi and Harry Reid were never consulted. So making sure, above all else, that Israel does not become a partisan issue is absolutely paramount in -

BLITZER: But do you blame the prime minister at all for this serious strain in the U.S./Israeli relationship right now?

SCHULTZ: Well, there - there is not a serious strain in the U.S./Israel relationship. In fact, the prime minister was very clear in both his speech to AIPAC and to the joint session that the U.S./Israel relationship remains strong and there are going to be bumps along the way and we have to -

BLITZER: What do you think of the prime minister's statement yesterday that he no longer supports what's called a two-state solution, a new state of Palestine living next to the state of Israel? That he says there will never be on his watch at state of Palestine?

SCHULTZ: Well, I want to be careful because the polls have not closed about making any statements that might, you know, affect or interfere with their election. But I'm confident that, number one, Israelis are going to go to the polls. They're the most vibrant democracy, our most significant ally in the region. They're going to go to the polls in significant numbers and make the choice that's best for them. And on the issue of a two-state solution, American policy, longstanding American policy, both in Congress and through President Obama and previous presidents is that we support and believe a two-state solution, two peoples living side by side in peace, the Palestinian state and the state of Israel maintaining its Jewish character as a Jewish democracy is absolutely essential to make sure that we can have peace in the region.

BLITZER: So you disagree with the prime minister on this latest statement --

SCHULTZ: I support U.S. policy, which supports the two-state solution.

BLITZER: Let's talk about some other issues. You're the chair of the DNC, the Democratic National Committee. You're a key member of Congress. 16.4 million people have now enrolled through Obamacare, the Affordable Care Act.

SCHULTZ: Yes.

BLITZER: But the U.S. Supreme Court is considering a key feature of the whole act right now. What happens if five justices of the U.S. Supreme Court rule those state subsidies, the way they are positioned right now, which is such an integral part of the whole Affordable Care Act, is unconstitutional?

SCHULTZ: I mean I'm confident that ultimately the Supreme Court is going to decide that Congress would not have set up two classes of people when it comes to subsidies provided by the Affordable Care Act. Clearly Congress intended, when a state decided not to establish a state exchange, that the national exchange would be treated exactly the same -

BLITZER: But what if the justices - five justices rule the other way? Is there a plan "b"? What do you do?

SCHULTZ: The outcome should be, and I expect it to be, that the -

BLITZER: But what if it's not?

SCHULTZ: You know, I'm not dealing in "what ifs." What I'm confident is, is that congressional intent was to ensure that everybody, no matter what exchange you are covered by, has access to these subsidies. And any reading of the statute other than that really simply would be inaccurate. And I can tell you as a member of Congress who voted on that law and who knows what I know I was voting on, that that would be the - the pure reading of (INAUDIBLE).

BLITZER: But I'm - but I'm sure you're worried about those 16.4 million people who now have health insurance, they potentially, a lot of them, could lose it if the Supreme Court rules the other way.

SCHULTZ: Clearly, if that happens, that would - that would be terribly problematic. But the bottom line is that a clear and true reading of the statute can only be that congressional intent was to make sure that no matter where you are covered, that you were able to be able - if you were eligible, to get access to these subsidies. But we were not setting up two classes of people. And there's no credible argument that can be made that we were.

BLITZER: Now, as chair of the DNC, you have to be neutral in the Democratic presidential primaries and caucuses.

SCHULTZ: Yes.

BLITZER: You were a big supporter of Hillary Clinton back in 2008. SCHULTZ: Yes.

BLITZER: Take a look at this new CNN/ORC poll, favorable opinion of Hillary Clinton. Back in November she had 59 percent favorability. Now it's down to 53 percent. Is she losing some trust now because of this whole e-mail uproar?

SCHULTZ: No. I mean Secretary Clinton isn't even a candidate for president of the United States at this point.

BLITZER: But she will be.

SCHULTZ: And, you know, when she decides finally whether she's going to run for president, I'm confident that she will enjoy significant support as she has for many years of the American people and that whoever our nominee is, whether it's Hillary Clinton or any other candidate, that we will make - that we will be able to elect the Democratic nominee as the 45th president of the United States of America. Secretary Clinton has exercised remarkable leadership, is one of if not consistently the most admired woman in the United States of America and with good reason.

<13:20:08> BLITZER: All right, let's talk about the state of Florida.

SCHULTZ: Sure.

BLITZER: Let's talk about campaigns. Because there's going to be a Senate race in Florida. Marco Rubio's seat.

SCHULTZ: Right.

BLITZER: We don't know if he's going to run for president, run for reelection, run for both -- could he run for both?

SCHULTZ: I - the jury is out on whether -

BLITZER: All right, the jury is out on that. But your name has been floated as a possible Democratic candidate. Do you want to give up your House seat and run for the Senate from the state of Florida?

SCHULTZ: You know, Wolf, I have gotten tremendous encouragement from constituents in my own district, from people across Florida, from donors urging me to run for the Senate. You know, whenever you decide what you're going to do in terms of running for office, you have to figure out what is the best way that I can make the world a better place and have the most impact. And in thinking it through, President Obama has given me the great privilege of chairing the Democratic National Committee and I have an opportunity to help elect the 45th president of the United States of America and I intend to full out serve my full four-year term that he asked me to serve. And I plan to run and will be running for reelection for my House seat in the House of Representatives and hope to have the privilege of continuing to represent my constituents in the United States House.

BLITZER: All right, so you're making some news right now. You're telling us you're not going to run for the United States Senate? SCHULTZ: I will be running for reelection to the United States House

of Representatives and serving my full four-year term that President Obama has asked me to serve as chairman of the DNC to help our - advance our Democratic agenda and make sure that we can preserve President Obama's incredible legacy, like the Affordable Care Act, like the robust economy with 60 straight months of job growth that we've had in the private sector. It is only through electing another Democrat as president of the United States that we're going to be able to make sure we continue to make that kind of progress. And I think I can have the most impact by remaining in these two important jobs.

BLITZER: A pretty wide-open race right now for the Democratic nomination for the U.S. Senate, right? There's a lot of potential names out there.

SCHULTZ: We have a lot of potential -

BLITZER: Charlie Crist removed his name.

SCHULTZ: Yes. But we have a lot of potential, really strong candidates. And I think, whether it's against Marco Rubio or in an open seat, there is a real opportunity to make sure that we can have the leadership that Floridians need to be able to count on to focus on job creation, health care, making sure we have a good, strong education system and continuing to get this economy turned around and not take us backwards like Marco Rubio has or any other Republican candidate would.

BLITZER: All right, Debbie Wasserman Schultz -

SCHULTZ: Thank you, Wolf.

BLITZER: The chair of the DNC, congresswoman from Florida, thanks very much for joining us.

SCHULTZ: Thank you so much.

BLITZER: Right now, Israelis are voting on the future of their country in a critical election that has global implications. The prime minister, Benjamin Netanyahu, his job is on the line. We're going live to Jerusalem when we come back.

(COMMERCIAL BREAK)

<13:26:02> BLITZER: The first results coming in from Israel's elections, just a few hours away, the prime minister, Benjamin Netanyahu, is hoping for a fourth term as Israel's leader. But whether he wins or loses, there could be changes in Israel's politics on the world stage. Let's discuss what's going on. Joining us, Aaron David Miller, he's vice president of new initiatives at the Woodrow Wilson International Center here in Washington. Joining us from Jerusalem, David Horovitz. He's editor of "The Times of Israel" online newspaper.

There could be some serious changes. What would be the biggest change - and I know you just wrote an article about this - if Herzog, for example, were to become the next prime minister of Israel? AARON DAVID MILLER, WOODROW WILSON INTERNATIONAL CENTER: Yes, the

hypothetical Herzog. I think the biggest beneficiary is going to be a relatively dramatic change in the U.S./Israeli relationship. There's no -

BLITZER: Under Herzog, the relationship with President Obama would improve almost overnight.

MILLER: Yes. There's no doubt. There's no doubt. And certainly at the top. I mean Debbie Wasserman Schultz is correct, the fundamentals of the relationship are sound, but the relationship at the top, for the last five years, has basically been a soap opera. It's been dysfunctional, very little sense of confidence and trust. And that's going to change because Mr. Herzog does have a fundamental view that this relationship is basic to Israel's security.

BLITZER: And, David, on the sensitive issue, we'll talk about Iran nuclear negotiations in a moment, of a Palestinian - a two-state solution. The prime minister, Netanyahu, yesterday said, on his watch, there's not going to be a Palestine, there's not going to be a two- state solution. Herzog, on the other hand, he actively promotes - he support that is, doesn't he?

DAVID HOROVITZ, EDITOR, "TIMES OF ISRAEL" ONLINE NEWSPAPER: Yes. I mean there's for sure going to be a change of tone if Herzog wins the elections. As Aaron said, an effort to rebuild ties with the United States and to try to inject a little bit of optimism and maybe some more confidence-building measures into a new attempt at peacemaking with the Palestinians, although Herzog is pretty wary. Let's not get carried away about this. Herzog doesn't think that there will be a deal tomorrow either, but he hasn't ruled one out in the way that Netanyahu very dramatically I would say did yesterday.

BLITZER: Where does Herzog differ, if at all, when it comes to the process of how the secretary of state, John Kerry, and the president are dealing on these nuclear negotiations with Iran? We - we know the prime minister -

HOROVITZ: He just took over -

BLITZER: We know Prime Minister Netanyahu's adamantly opposed.

HOROVITZ: Yes, well, I think Herzog is pretty worried - certainly worried about the prospect of a nuclear Iran. There's a consensus in Israel that Iran is lying to the world. It's definitely seeking nuclear weapons. And really that the United States and the international community are being duped here. But Herzog would not have gone to Congress and publicly essentially lobbied against the president. He would have tried to challenge this deal through more discrete channels.

BLITZER: So, presumably, and, Aaron, you've studied this U.S./Israeli relationship for a long time. We don't know who's going to win the election. We'll get those exit results at 10:00 p.m. Israel time, 4:00 p.m. here on the East Coast, the first exit polls will be coming out. We'll have live coverage of that. But if Herzog looks like he's going to be the next prime minister, I assume they'll be corking champagne over at the White House.

MILLER: Oh, I mean, I can hear the bottling popping even now if, in fact, the trend lines, the momentum prove that the differential between the two is sufficient enough to allow him to form the government. There's no question about that. Because they see both a coincidence of personality between the president and Mr. Herzog and policy.

But David's 100 percent right on the peace process. I mean we really need to be realistic here. You've got a lot of problems, a lot of challenges. And remember, Wolf, this guy's not an island. He's going to have a coalition. And that coalition could likely be composed of religious parties, as well as center right parties. Mr. (INAUDIBLE) may be the star of this election and he can make or break either Herzog or Netanyahu.

BLITZER: That's one of those smaller parties that potentially could make or break the next coalition. How does it look right now, David? You want to give us your assessment only a few hours before we get those first exit polls?

<13:30:01> HOROVITZ: Yes, I'll give you my assessment, which is that if anyone tells you they know who's going to win this election, you should smile politely and move on. There are 11 parties competing. There are all kinds of variables. There's a higher electoral threshold than before.