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GM Victims' Loved Ones Speak Out; Terrorist Fighters Fought Iraqi Troops in Baqubah; Reid: Cheney On "Wrong Side Of History"

Aired June 18, 2014 - 10:00   ET

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

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DON LEMON, CNN ANCHOR: Happening now in the NEWSROOM, does this man hold the secrets about the Benghazi terror attacks? One of the most wanted men in the world now on a navy ship bound for the U.S.

CNN spoke with him before he was caught.

Army Sergeant Bowe Bergdahl is getting his first glimpses of the firestorm following his ignited by his release from Taliban captivity. He is watching the news. What this means for his reintegration?

Honduras has a request for the United States, don't deport our kids. Why they say the migrant children who crossed the border alone are better off on this side of the border. You are in the NEWSROOM.

Good morning, everyone. Thank you so much for joining us today. I'm Don Lemon in for Carol Costello. We're going to begin with a lot of news following two big stories happening right now on Capitol Hill.

First up, General Motors, CEO, Mary Barra in the hot seat over her company's recall crisis. She's testifying in front of a House committee this hour. What will she say? And what can lawmakers do to protect drivers and their families.

Plus the big guns are out, any minute now, Defense Secretary Chuck Hagel and Joint Chiefs of Staff chair, General Martin Dempsey will testify to senators about the defense budget, the Benghazi arrest and fighting in Iraq looming large of course. We're going to start with GM Chief Mary Barra testifying about why GM waited more than ten years with a recall link to 13 deaths. Victims of loved ones spoke out last hour.

(BEGIN VIDEO CLIP)

CANDICE ANDERSON, FRIEND DIED BECAUSE OF GM IGNITION DEFECT: My name is Candice Anderson and I'm a survivor of the GM ignition defect. So many families have been affected by GM's negligence. November 15th of 2014, I was at the wheel of a 2004 Saturn Ion that veered off the road and struck a tree, killing my best friend. For the better part of ten years I've carried the unnecessary guilt, that I was the cause of Michael's death that I was the cause of a mother to lose her only son so tragically. That I was the cause of two innocent girls crying for their dad. (END VIDEO CLIP)

LEMON: Poppy Harlow joins us now from Washington. Poppy, you've been following this story. What do we expect to hear from Barra?

POPPY HARLOW, CNN CORRESPONDENT: Good morning to you, Don. We know part of what we're going to hear. We've gotten her prepared remarks. She writes, quote, "This is a tragic problem that never should have happened, and it must never happen again. I will not rest until these problems are solved."

She goes on to say, "I am not afraid of the truth. That part of her prepared remarks this morning. Also testifying next to her will be former U.S. Attorney Anton Valukas. He was brought on by GM to do that internal investigation. We're told he had complete access to every document, every employee. No restrictions to find out how this company could not have told the public about a deadly defect for more than a decade.

Here's what he's expected to tell lawmakers today, about GM, quote, "We found failures throughout the company, including individual errors, poor management, Byzantine committee structures, lack of training and inadequate policies. It was a scathing 300-page report. Lawmaker didn't get a lot of answers last time when she asked whether or not it was a cover-up.

She kept saying we're investigating. Now she's not going to be able to say that. She's going to have to look at lawmakers and say here what's we know from our internal report. How GM engineers not have connected that this was not a customer inconvenience problem that their car was shutting off but this was a safety issue directly tied to the airbags not deploying. We know lawmakers will ask that.

We'll ask the end of your investigation, one key thing she will play up is the safety changes that they have brought in a new head of safety. They have doubled the amount of safety investigators. And as you know, the number of recalls that GM has made since this major ignition switch recall if February has been massive.

What they are doing now is recalling pretty much everything, but the kitchen sink that may have a tiny problem so they can never be pointed at again and saying you didn't recall soon enough and it caused -- it costs lives. We're going to head over the hill after this and be life for you later in the air there for what Mary Barra has to say.

LEMON: Thank you, Poppy. Breaking news now out of Iraq, oil giant, Exxon Mobil carrying out a major evacuation of his staff. It has branch offices in Baghdad and Basra. BP also reportedly evacuating workers. At one point, terrorists controlled most of the site. Oil prices are at a nine-month high. President Obama is going to discuss the crisis in Iraq. There seems to be little agreement about what role we should be playing.

Anderson Cooper, terrorist fighters seem to be approaching day by day. Have government soldiers and civilian volunteers managed to thwart any of that advance. ANDERSON COOPER, CNN HOST, "AC360": We've seen fighting up in the north, that oil refinery. The latest word I have on that, there are reports that some have fled but a core group are still there, are still holding that base and are still fighting off insurgents which basically control entire area around that base. That would be a huge loss for the government if they lost the largest oil refinery in the north.

And closer here to Baghdad, fighting still in Baqubah, a town about 37 or so miles from Baghdad, security is tight here in the capital. There are a lot of checkpoints, but as I've seen out on the streets over the last 24 hours here, tensions are high and everybody seems to be focused on what's happening in Baqubah. Take a look.

(BEGIN VIDEO CLIP)

COOPER (voice-over): ISIS forces and Sunni militants continued their advance closer to Baghdad, attacking the city of Baqubah, less than 40 miles north of the capital. The push to Baqubah is another troubling sign for Prime Minister Maliki who has seen his military unable to stop the militants advances. Hundreds of thousands of Iraqis are fleeing the fighting. On this road, entire families took whatever possessions they could, even livestock.

Maliki and Shia clerics have called for people to take up arms against the militant, and thousands of Shia have responded? CNN cannot independently verify the video. On a Baghdad treat, we met one young man selling shoes, he says he has already signed up to fight. On God's will, Iraq will be stabilized.

We will be victorious, we don't need any U.S. occupation or Iran. We don't need any Arab country. But with the fighting concerns sectarian divide is deepening. New signs of possible sectarian killings. Days after videos up loaded by ISIS claimed to show mass killings of Shia.

Nearly four dozen prisoners were killed as militants sieged the city. They were shot to death at close range. Allegations they were killed by Iraqi police were denied by authorities which blamed the deaths on shelling by is.

Also in Baghdad, another troubling sign. Four bodies were found in a largely Shia neighborhood that had been shot at very close range. It's not clear if this is an isolated incident or this is a sign of rising sectarian violence.

At the height of the killings here in Baghdad in 2006 and 2007, sometimes there would be dozens of bodies every day that would be discovered, often with signs of torture, hands bound, sometimes holes drilled into their heads.

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COOPER: Certainly again, as I said, if that refinery held into ISIS hands that would be a huge blow for the government of Maliki.

LEMON: Anderson, we saw sort of what it was like on day-to-day life in Iraq. Can you talk to us more for the average citizen? What is it like living lately in Iraq?

COOPER: Look, this is a country that as you well know has had decades now of war, decades of oppression. This is a place that is used to high levels of tension, high levels of uncertainty. So in many sideways -- ways, life is going on as normal in this capital. As you saw, there are stalls open in the street, shops are open, particularly early in the day. People are going about their business. People are going to work. This is a Shia dominated city.

So there's great confidence here among the Shia in the city that the city itself is not going to fall. Though militants may be, you know, less than 40 miles from here, in Baqubah, between here and there, there are more hardened troops, there are these large numbers of Shia volunteers who have signed up, thousands who have come from fighting over the last two years in Syria. So they have now come back here to defend the capital. So there is a sense of optimism. I talk to a lot people in the street yesterday are they concerned, are they fearful of Baghdad falling to a man they all know they can resist the forces that are nearby. It is kind of surreal in just how used to conflict people here are.

You know, I think if there were enemy fighters outside New York City, people in the city would be understandably concerned. Here, it's, you know, it's just one -- the latest thing to have happened in a long line of things that have been going on here for many years.

LEMON: Thank you very much, Anderson. Stay safe.

Let's take a closer look now on this morning's news on oil companies evacuating staff from Iraq. CNN business correspondent, Alison Kosik, at the New York Stock exchange. Iraq is the second largest OPEC oil producer if production drops off, prices are going to rise?

ALISON KOSIK, CNN BUSINESS CORESPONDENT: If oil production is disrupted for a sustained period, don't be surprised to see oil prices rise. We're seeing about a third of a percent higher for oil prices rising not a big deal. No doubt about it, Iraq is a huge player in oil production and exports. Iraq produces about 3.3 million barrels a day.

Now there were hopes that Iraqi oil production would actually increase this year. That doesn't look likely now. That could be putting more pressure on those oil prices as well. Now the thinking is maybe Saudi Arabia would go ahead and raise production to make up the shortfall. There's no guarantee for that.

Also the problem analysts say we're in the peak demand period worldwide. You see Libya already off line. So this all adds to oil prices going higher which of course lead to higher gas prices as well. Some analysts are saying 20 to 25 cents more per gallon for gas if this continues in Iraq.

LEMON: Thank you very much. We'll check back with you as well. The extraordinary circumstances in Iraq can make even a mundane hearing in Washington potentially interesting. And the pentagon's top men appear this hour. Before the senate appropriations committee is where they are appearing. They are going to be talking there in just a moment.

Defense Secretary Chuck Hagel joins Martin Dempsey making their appearances as part of this budget process. Barbara, do you expect much focus on the crisis that's unfolding in Iraq even though they are talking budget?

BARBARA STARR, CNN PENTAGON CORRESPONDENT: Well, they are talking budget. But expect to see at least some of these senators ask about the situation in Iraq and Hagel, we are told, will mention it as part of, you know, this verging unrest in the world. He will make the case as to who the budget needs to stay in the range of $495 billion a year.

Coming into the hearing room perhaps awkwardly because of Iraq, unrest in Libya, Yemen, the fights with al Qaeda affiliates around the world. The Pentagon is facing about $50 billion in mandatory spending cuts from Congress if they can't get that turned around and that's really what Hagel is going to talk about.

Look at everything going on, look at what we're asking the U.S. military to do. We can't have more spending cuts right now. So while he might not have had a really strong case politically a couple of weeks ago, he certainly does today -- Don.

LEMON: Barbara Starr, we'll be watching. Still to come, out of office and on the attack. Former Vice President Dick Cheney rips President Obama for just about every decision he's ever made about Iraq.

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LEMON: The ever changing situation over Iraq has congressional leaders coming to the White House this afternoon for a meeting with the president. Senate President Harry Reid and Minority Leader Mitch McConnell along with Speaker of the House John Boehner, minority leader, Nancy Pelosi will be there.

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REPRESENTATIVE JOHN BOEHNER (R), HOUSE SPEAKER: I can just imagine what our friends in the reeng (ph), our allies will be thinking by reaching out to Iran at a time when they continue to pay for terrorism and foster terrorism, not only in Syria, in Lebanon but in Israel as well.

UNIDENTIFIED MALE: Are there certain parameters of what you think is acceptable for U.S. involvement, whether it be 375 security people --

BOEHNER: What I'm looking for is a strategy that will guarantee some success in keeping Iraq free and propping up the democracy that we thought for everybody. I don't need to get into the specifics. The president needs to outline an overall strategy for success and I'm hopeful today in our meeting I'll hear from him.

(END VIDEOTAPE) LEMON: President Obama getting ripped in the pages of the "Wall Street Journal this morning. Former Vice President Dick Cheney pinning a scathing criticism of President Obama. Rarely has a U.S. president has been so wrong about the expense of so many too many times to count. Mr. Obama has told us he is ending the wars in Iraq and Afghanistan as though wishing made it so. His rhetoric has now come crashing into reality.

Watching the black clad ISIS jihadists take territory once secured by American blood is final proof, that America enemy ISIS are not decimated.

Do you first, just moments ago, Senator Harry Reid slammed that Cheney op-ed. Listen.

(BEGIN VIDEO CLIP)

SENATOR HARRY REID (D), MAJORITY LEADER: This morning, there was an op-ed piece in the "Wall Street Journal." Now who would write that? Dick Cheney, just remind everyone, former vice president of United States who clearly was the chief architect of the war. Mr. President, if there is one thing this country does not need, it's that we should be taking advice from Dick Cheney on wars, Being on the wrong side of Dick Cheney is to be on the right side of history.

(END VIDEOTAPE)

LEMON: What do you think?

ROSS DOUTHAT, CNN POLITICAL COMMENTATOR: I think so too. In a certainly way that op-ed tells us a lot more about the fact that Liz Cheney wants to run for office in the United states again. The reality is that if you read that op-ed closely, you'll notice that Cheney outlines a very broad critique of the president's foreign policy that makes a lot of fair and reasonable points, but don't in the end offer a significant strategy for dealing with the situation in Iraq right now.

And I think this is the problem facing the president is that there is a strong case that he and the White House should have worked harder to keep U.S. troops on the ground in some form there three years ago, but at this point, you can't un-wind the clock to that situation.

You are in a different situation, and Iraq is basically two and a half countries at the moment. It's this broad swath of chaotic of territory controlled by militants. I haven't seen any strategy for propping up democracy that doesn't seem to exist anymore.

LEMON: Michael, doesn't this ring untrue that it was Cheney who signed the U.S. agreement withdrawing troops from Iraq? When you read this, you have to suspend belief a little bit, wait a minute, Dick Cheney was the reason we got into Iraq and we got advice from Iraq and intelligence was flawed. There's some legitimate concerns there but it's tough to get advice from Dick Cheney on this.

MICHAEL PREGENT, FORMER ARMY OFFICER: The main point is that the Iranian government put pressure on Shia politicians not to sign that in the first place. They were the ones to yield more influence on Iraqi politicians than we were. We were trying to facilitate their movement toward progress. The Iranians had a more ideological agenda.

LEMON: Should President Obama have tried harder to have American forces remain on the ground instead of letting the previous agreement stand? Was there any possibility that that would happen or was can never going to let troops stay that?

MICHAEL PREGENT, FORMER SENIOR INTELLIGENCE ANALYST: The one thing had that happened, it would have allowed U.S. advisers to actually see the politicization of forces taking place. In order to put pressure of the Maliki government, to continue the successes. We have to remember there were 54 attacks daily in Baghdad 2006. In 2010, we saw 10 attacks. Ensure that the people that we've trained still remain in the same positions they have been in, and at least it would have given us an eye on what was going on in Iraq.

But again, at that point, he wasn't going to be signed because Iranians were yielding way too much political pressure on the Maliki government. That's why we should not give them more leverage now by asking them to come into the foal. The more leverage we give them, the less leverage we have.

LEMON: Where do we go from here? Is putting troops back on the ground? Is that a realistic option?

MICHAEL OREN, CNN MIDEAST ANALYST: Here's what we know about -- I'm sorry, was that to the ambassador.

LEMON: Go ahead.

OREN: We have the same name, Michael. With your permission as a person who is an historian by training, this is a very interesting debate what went wrong in 2003, different decisions that could have been made in 2011, whether America could have stayed in Iraq in any way, but we're missing the big picture. The big picture is where does America go from here and the Middle East is in the throes of all of these huge historic changes whether it be the Sunnis versus the Shiites, the breakdown of the Arab state.

Modern nationalists versus Islamic traditionalists, where does America go from here? And it seems to me there are a number of bad options on the table, whether making an alliance with Iran, which is a terrible option. Iran is the world's largest state sponsor of terror. Iran is complicity in the murder of 160,000 Syrians.

And Iran killed American troops to get out of Iraq and now Iran somehow wants to get America back into Iraq. It's a terrible option. Putting boots on the ground is not a good option. To me, the best way to go forward right now is by using the leverage of the moment to engage with the Maliki government.

Getting them to open up, to bring in Sunni and Kurdish elements of the government. Stop the purges. If the pro quo is some type of American air support, that should be on the table. LEMON: How much of this sort of revisionist history, rather than as you say looking forward and not fighting a war that was years ago?

OREN: Again, this is something that's going to be debated over the course of next ten years, 50 years, maybe the next 100 years, there always be revisions. Back in 2003, I'm not an American, I'm an Israeli, but I was invited into testimony on the eve of the invasions, I said it was bad idea. The British had tried it, the French tried it and lost their stomach for it and left.

I hated being right on that. We could still debate it whether it was a good idea. The big question how does America in the west preserve its interests in the face of such chaos in the Middle East.

LEMON: Got to go. Interesting conversations, Gentlemen. Appreciate that. Still to come here on CNN, months before his arrest by U.S. Special Forces, the man believed to be a mastermind of the attack in Benghazi talks to CNN. He said he would talk to investigators. Now he's getting his chance. Hear some of his interview with CNN that is next. Arwa Damon is there.

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