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Auto Recalls Continue; Crisis in Iraq; VA Scandal

Aired June 24, 2014 - 15:00   ET

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

ANNOUNCER: This is CNN breaking news.

BROOKE BALDWIN, CNN ANCHOR: And we continue on top of the hour here. I'm Brooke Baldwin with some breaking news. There is a confirmed tornado on the ground right now near Indianapolis.

(WEATHER UPDATE)

BALDWIN: And now to a story that, quite frankly, keeps getting worse. It's the growing scandal over the way our veterans have been treated or, more accurately, mistreated by our veterans health care system.

CNN has been all over this story since the very beginning.

And at this latest congressional hearing, our reporting on apparent changes to patient records to hide how some vets died while waiting for treatment became part of the official discussion.

Take a listen.

(BEGIN VIDEO CLIP)

REP. JACKIE WALORSKI (R), INDIANA: I just got note from a constituent that says that there must be some kind of a CNN program on tonight and that there's a new revelation.

It says: "Records of dead veterans were changed or physically altered, some even in recent weeks, to hide how many people died while waiting for care at the Phoenix VA Hospital, a whistle-blower told CNN in sunny revelations that point to a new cover up in the ongoing VA scandal. 'Deceased' -- quote, unquote -- notes on files were removed to make statistics look better so veterans would not have to be counted as having died while waiting for care."

And the quote is from Pauline DeWenter.

So, you have been to the Phoenix facility four times. Are you aware of this new revelation?

DR. THOMAS LYNCH, VETERANS HEALTH ADMINISTRATION: I'm not aware of the revelation. I am aware that the OIG is looking carefully at all of the deaths that occurred.

I do not know of any attempts to hide this, Congresswoman.

(END VIDEO CLIP) BALDWIN: That reporting by our Drew Griffin that the congresswoman mentioned.

He joins me now here in studio.

And I tell you, I love seeing you, but I hate seeing you, because every time you're sitting in front of me, we're reporting on something increasingly egregious.

What do you have today?

DREW GRIFFIN, CNN INVESTIGATIVE CORRESPONDENT: This allegation is coming from, Brooke, our original deep throat on this story. This is the woman who kept the secret list in Phoenix.

She's been talking to us for months. She is coming out now because she believes she needs to let you know, the public know and veterans know, that there is in her words a cover-up still going on.

(BEGIN VIDEOTAPE)

GRIFFIN (voice-over): Pauline DeWenter, a scheduling clerk at the Phoenix VA, is coming forward, because she believes she knows something that is frankly unthinkable. She says someone now is trying to hide the number of U.S. Veterans who died here waiting for care.

In seven cases so far where she has determined a veteran on a waiting list was in fact deceased, she says someone above her has changed the record back, the veteran suddenly listed as alive.

(on camera): Somebody is going on that electronic wait-list and where people are identified as being dead, somebody is changing that and saying, "No, they're not dead."

PAULINE DEWENTER, PHOENIX VA SCHEDULING CLERK: Correct.

GRIFFIN: To hide the fact people died on that list?

DEWENTER: That's my belief.

GRIFFIN: What would be the other -- any other purpose?

DEWENTER: There wouldn't be any other purpose.

GRIFFIN (voice-over): Why? DeWenter says, the numbers of dead in this VA wait-list scandal maybe even bigger than first reported and someone she says is trying to cover-up the record.

(on camera): And that has been happening fairly recently?

DEWENTER: Yes.

GRIFFIN: That is a cover-up.

DEWENTER: Yes.

GRIFFIN: Did you feel that the investigators are on to that?

DEWENTER: Yes.

GRIFFIN: Because you told them.

DEWENTER: I have surrendered evidence. Yes.

GRIFFIN (voice-over): If there ever was a doubt there was a secret waiting list at the Phoenix VA, DeWenter says she's here to lay those doubts to rest. There simply were not enough doctors, not enough appointments to handle new patients, backlog patients, and, yes, very sick patients.

DeWenter, a scheduling clerk, was making life-and-death decisions.

DEWENTER: And that really overtook even the wait-list because now I have a consult where veterans are very sick. So I have to ease up on the wait-list, it's so wrong to say, but and work these schedule appointments, so at least I felt the sickest of the sick for being treated.

GRIFFIN: And you're making basically those triage decisions?

DEWENTER: Yes.

(END VIDEOTAPE)

GRIFFIN: We asked for a comment from the VA. They would not say much, other than they're just trying to handle these wait-list issues and get veterans in.

But they're leaving everything up to the Office of Inspector General, and now, we know, the Department of Justice.

BALDWIN: Just glad your phone is ringing with these whistle-blowers exposing what has apparently been happening for years.

GRIFFIN: Yes.

Thank you, Drew Griffin, very much for your investigation.

BALDWIN: Now to this.

We have just gotten word now that 90 U.S. military advisers have arrived in Iraq. This is all part of the president's contingent of non-combat troops. Remember, we heard the president announce last week up the 300 of them will arrive in country. We expect them to trickle in to Iraq, as sectarian divisions here -- this is the thrust of this -- threatening to tear this country apart.

Secretary of State John Kerry meeting not just with that government there in Iraq, but also with leaders of the different sects as he tries to cobble together some kind of compromise.

Today, Secretary Kerry urged Iraqi Kurds not to give up on a united country after the Kurdish leader said -- quote -- "We are a facing a new reality and a new Iraq."

Kurdish President Massoud Barzani assured Kerry he wants to go to bat or a new government, but Kerry is still skeptical, saying words are cheap.

Joining me now, Jim Sciutto, chief national security correspondent live for us now in Belgium.

But you were in country. You sat down with Secretary Kerry. Really, first, Jim, how much leverage does Secretary Kerry really have here?

JIM SCIUTTO, CNN CHIEF NATIONAL SECURITY CORRESPONDENT: It's a fair question.

Even he will admit it remains to be seen whether that leverage works. I think the leverage now is that Iraq is in real crisis, that its leaders are truly fearful of their country falling apart and of ISIS continuing to gain ground unchecked. That is the leverage, but even with that leverage. Secretary Kerry says, yes, he received assurances over his two trips the last couple of days.

He went to Baghdad yesterday and to Irbil today in the north. He received assurances, but he said to me a number of times, let's see in the next couple of weeks whether Iraqi leaders, Sunni leaders, Shia leaders and the Kurds that he met today, follow through on those insurances.

It's an open question. And I asked him as we sat down today, has he seen any hard evidence that they're going to follow through? Here is how he answered that question.

(BEGIN VIDEO CLIP)

SCIUTTO: What hard concessions have any of the sides offered to each other to bring about this political compromise that you and the administration say is necessary?

JOHN KERRY, U.S. SECRETARY OF STATE: Well, it is a -- it's the question.

And I welcome it, because I think what I have found here is, first of all, the significant fact that 14 million Iraqis went out and voted. A very significant percentage of the population chose democracy. And there is a constitutional process, which we in our strategic framework agreement are pledged to be supportive of. And we are.

That constitutional process is actually playing out right now. The fact is that even President Barzani today, who is opposed to the prime minister, made it clear that he wants to participate in the process, that he wants to help choose the next government.

And other leaders that I met with were all engaged and energized and ready to go to bat for a new governance. So while he says there's a new reality, the new reality is that they are under attack from ISIL and they have realized that they cannot continue in this sectarian division. So part of the new reality is yet to be fully defined as they form this new government.

And so that's the critical thing now. That's the measurement, Jim, that is so key now. And I think we have to let that organic process work out a little bit. Words are cheap. I fully -- I'm not taking anything I hear to the bank and saying, wow, it's going to be solved, but I'm hearing things that indicate to me that if they follow through on the things they are saying, there's a capacity to have a new government that could be a unity government, that could reflect a greater capacity for success.

(END VIDEO CLIP)

SCIUTTO: You hear that dose of skepticism from Secretary Kerry there, saying, words are cheap, remains to be seen. That's the test in the coming days.

But I really get a sense, Brooke, that this is not a administration that is eager, that is champing at the bit for military action. Their focus now and Secretary Kerry's focus in country is on building a political compromise, because it's U.S. officials' view that any military action will be largely worthless unless there's a government, a unified Iraqi government to back it up.

BALDWIN: But if words are cheap, Jim Sciutto, how confident is Secretary Kerry in this notion of diplomatic solution vs., as others have thrown out in years and even currently, the notion of Iraq splintering into three parts or even breaking off in a civil war?

SCIUTTO: It's his view -- listen, I -- listening to him in a number of times on this trip, because we are repeatedly asking him that question, I would say that he's skeptical.

They are focusing every diplomatic effort, every political effort. But they want to see the proof too that Iraqis will follow through on these promises. And it remains to be seen. He does not underestimate the risk to the country, the risks of it breaking up frankly along these sectarian lines. They're making every effort. They're backing up.

He said repeatedly to Iraqi leaders that the U.S. stands with Iraq. But I will tell you, like a lot of people watching this situation, Brooke, even U.S. officials say Iraqis have to step up. And it remains to be seen whether they will step up.

BALDWIN: Jim Sciutto, thank you so much, just finishing traveling with the secretary of state, John Kerry. Thank you for us in Belgium right now.

The search for that missing airplane, Malaysia Air 370, going on now for more than 100 days. But now investigators say it could take decades to find MH370. We tell you who exactly is saying that and we will ask the question, who will pay for that long-term search?

Plus, primary day in Mississippi. People there spent months watching one of the ugliest fights in the country and now some lifelong Democrats are urging people to vote for a Republican. We will explain why and take you there coming up.

(COMMERCIAL BREAK)

BALDWIN: Welcome back. I'm Brooke Baldwin.

Pilot mismanagement caused that Boeing 777 jet to crash and burn onto a San Francisco runway last year. That's what we're learning here from the National Transportation Safety Board. These investigators made that determination today about Asiana Airlines Flight 214.

That jet slammed into the seawall last summer because it was flying too low and too slowly. Federal officials say the pilot botched the airplane's descent during the visual approach. They also cite mistakes the flight crew made with autopilot controls.

(BEGIN VIDEO CLIP)

ROBERT SUMWALT, NATIONAL TRANSPORTATION SAFETY BOARD MEMBER: The errors of the pilots were not because of incompetency. They were because of an expectation that the autopilot and auto throttle system would do something for them that the airplane was not designed to do, and also a lack of monitoring.

(END VIDEO CLIP)

BALDWIN: The NTSB adds that the crew did not fully understand the complex -- complexities of the Boeing jet's flight system, and made a number of recommendations as a result.

An executive of Malaysia Airlines said out loud that the thought many feared about Flight 370 and those 239 souls on board -- here's what he said -- I'm quoting him -- "It could take decades before it is located."

Hugh Dunleavy, the airline's commercial chief, told Britain's "Daily Telegraph" -- and I'm quoting him now -- "I believe it is somewhere in the South Indian Ocean. But when a plane hits the ocean, it's like hitting concrete. The wreckage could be spread over a big area and there are mountains and canyons in that ocean. I think it could take a really long time to find. We're talking decades."

Oof.

Joining me, CNN safety analyst David Soucie, a former FAA safety inspector who wrote the book "Why Planes Crash."

David Soucie, decades, really?

DAVID SOUCIE, CNN SAFETY ANALYST: You know, to me that's almost like trying to set expectations for people, so that there will be less pressure on them.

He mentions that landing on water is like landing on concrete. Well, I have news for him. Airplanes land on concrete every single day and without breaking into pieces. So the fact that a successful landing could have taken place in that ocean still exists in my mind. So, I'm not sure where he's coming from in all that.

But he's definitely off base with 10 years. We can't wait that long to get the information here. The cost of not finding the aircraft is extensive. You talk about the lack of safety in air travel. The people that fly in those regions and in every region are afraid. And there is concern about what happened here. And without knowing, it's very concerning to go fly.

BALDWIN: You can understand why he would want to take the pressure off. The pressure has been on for 100-plus days now.

SOUCIE: Yes, it has.

BALDWIN: But no matter how long it takes, be it months, years, and decades, who then, David, would pay for that?

SOUCIE: Well, right now, that's still up in the air.

And we all have an obligation, I think, in the international community to participate in this. There's not one person that can be blamed for it. And the insurance company that -- people have said the insurance company will pitch in. Well, it's not the insurance company's responsibility to find the airplane.

Their responsibility is to pay for it once it's found and to pay for those damages. So, that money is not coming from the insurance company. The money that is coming from Malaysia has been tapped out, for the most part, because the airline only has so much that they can put in. So the other countries are going to have to pitch in and find this airplane because of the value, the importance of the information that's lying at the bottom of the ocean right now.

BALDWIN: There was another wrinkle that we learned about today from the Australian Transportation Safety Bureau, which is leading the search, saying now they will not announce the new search location tomorrow, as they had initially suggested.

We know that the new search location, it's still is in the same -- it's still in the Indian Ocean, just farther south from where they had been looking. Whenever they announce where this is and when they begin the search, David, do you know, will it be -- will it be conducted similarly using those towed pinger locators, et cetera, that we focused on for so all those months, or will it be totally different?

SOUCIE: No, the equipment will be the same.

The difference here is that what they have learned from the first one is not to ultra-focus on one location. So, they are looking at several different possibilities. So, what you will see from the next search areas is that you will have two or three search areas that will be searched concurrently, which I think is very, very smart.

BALDWIN: Ah.

SOUCIE: And i think what they have learned is you can't ultra-focus on one thing. So, I think that's where we are looking in now.

And the fact that it is not going to be released tomorrow, that does not surprise me at all. I am in close contact with people that are reviewing the Inmarsat data right now within Inmarsat. And they are working day and night. They're making sure it's right this time. They want to make darn sure they haven't overlooked an assumption. It's a very complicated thing to look at, what does the pilots -- what do the pilots do, what capabilities the aircraft have?

Those kind of things are things they hadn't considered before, and now they are in the mix. So, they want to make sure they do it right. And they are not going to release it until they are 100 percent confident that that's where they need to be searching.

BALDWIN: And with this working around the clock, I'm thinking of the families. I'm sure they don't want it to take decades either whatsoever.

David Soucie, thank you so much.

SOUCIE: That's correct.

BALDWIN: We will bring you back on as soon as we get new information on that, people looking for that plane.

SOUCIE: Thank you, Brooke.

BALDWIN: Now to this. Does it feel like we have been telling you about a car recall every couple of days? Well, it's not just you.

This year, as we have now learned, has been historically horrendous for car companies, from ignition glitches to air bag problems. We will take a look at exactly how bad it has been.

Plus, a big moment at the World Cup today. And when I say big, not good big. The player with the nickname the Cannibal strikes again. It appears he bit a player during the match, and now there could be consequences. We're live in Rio coming up.

(COMMERCIAL BREAK)

BALDWIN: The auto industry is in the midst of a record year for auto recalls, more than 300 million of them. And just this week, seven automakers recalled millions of cars because of air bag issues.

You have Honda, Nissan, Toyota, Mazda, Chrysler, Ford, and BMW all recalling vehicles.

CNN business correspondent Alison Kosik is live at the New York Stock Exchange.

When I read this, this morning at CNN Money, I thought, my goodness. This is the kind record you don't want.

ALISON KOSIK, CNN CORRESPONDENT: Exactly. So, what this recall that you mentioned is about is about air bags

that were actually made by a Japanese company by the name of Takata. And this recall comes after NHTSA investigated six reports of ruptures which all happened in Florida and Puerto Rico.

And what Takata is saying is that it believes that there were high levels of humidity and that was a factor in that inflator problem. And you alluded to this earlier, Brooke, that it really does seem like almost every week we have got a new recall to report. And if you're thinking, hmm, it's more than usual, I'm thinking you're right, because the U.S. auto industry has actually just broken the annual record for safety recalls.

And it's only June. Car companies have recalled more than 32 million vehicles in the U.S. this year. That breaks the industry's record -- industry's record of 30.8 recalls from 2004, Brooke.

BALDWIN: That is what it was that I saw when I saw this annual record. And, as you point out, we're just in June.

KOSIK: Right.

BALDWIN: I mean, overall, why are we seeing so many recalls?

KOSIK: That is the money question, right?

So you think about it, what General Motors has been going through. GM has got a lot to do with these numbers, because it is under intense scrutiny, after it took 10 years to recall millions of cars with that deadly ignition defect that was tied to at least 13 deaths.

So, GM has gone ahead and it's changed its procedures. It is actually going back through its files. It's recalling cars for any potential issue. And so far, GM really is the one automaker that has recalled more than 17 million cars in the U.S. this year.

So, that makes up more than half of all the recalls this year. But what GM is going through is actually going to become this game- changer, Brooke, for the entire industry, because the CEO of Fiat Chrysler actually came out and said recently that GM's recall nightmare has created this sort of heightened sensitivity in the industry and sort of created this new paradigm for the industry when dealing with recalls.

And maybe you're seeing them be more hypersensitive, and maybe that's a good thing -- Brooke.

BALDWIN: Understandably so. That's definitely the -- the explanation, right, for the higher number, as you point out.

KOSIK: Yes.

BALDWIN: Alison Kosik, thank you for us from New York.

KOSIK: Sure.

BALDWIN: And now to your iPhone. Maybe you're thinking it's old. Maybe you don't like the color, the make, the model. I don't know.

Rumors that Apple is fixing one of the most common complaints about the iPhone. We will tell you what that is and what this next iteration of this iPhone will look like.

Plus, it is primary day, and specifically we're talking primary day in Mississippi in one of the dirtiest races in our country, one of the Republican candidates courting Democratic voters, the other sending people to police the polls. What's going on? Dana Bash on the ground in Mississippi -- we will have a live report next.

(COMMERCIAL BREAK)