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2 Key Ministers Quit Boris Johnson Government; Heavy Fighting, Widespread Shelling In Battle For Donetsk; Finland And Sweden Move A Step Closer To NATO Membership With Accession Sign-Off; Death Toll Rises To 7 In Highland Park Parade Shooting. Aired 1-2a ET
Aired July 06, 2022 - 01:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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LYNDA KINKADE, CNN ANCHOR: Hello, everyone, I'm Lynda Kinkade. Ahead on CNN Newsroom. Could this finally be the end for Boris Johnson, the British prime minister and another five years political life of the two top ministers quit the cabinet.
Plus, as bloody battles raging Ukraine's east, NATO takes another step towards expanding its alliance.
And escape plan. Investigators say the Illinois parade shooter dressed as a woman in the hope of evading police.
UNIDENTIFIED MALE: Live from CNN Center. This is CNN Newsroom with Lynda Kinkade.
KINKADE: Two major resignations are rattling the British government and putting further pressure on a prime minister already in a fire for his political future. And a huge blow to Boris Johnson, Chancellor of the Exchequer Rishi Sunak and Health Secretary Sajid Javid announced Tuesday night that they were quitting, saying they can no longer work for a government hit with a series of scandals.
The latest controversy involves the handling of the deputy's chief whips resignation last week amid claims of misconduct.
At first, Downey Street denied Mr. Johnson knew anything about previous allegations against Chris Pincher before later admitting the prime minister had been aware. On Tuesday, he acknowledged that Pincher should have never been appointed to his government.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, BRITISH PRIME MINISTER: I think it was a mistake and I apologize for it. I think in hindsight, it was the wrong thing to do. I apologize to everybody who's been badly affected by it. And I just want to make absolutely clear that there's no place in this government for anybody who is predatory or who abuses their position of power.
(END VIDEO CLIP)
KINKADE: But that apology may have come to light as the Prime Minister's government's or even more resignations today. UK Solicitor General Alex Chalk said he was stepping down with great sadness, but he cannot defend the indefensible.
CNN's Nada Bashir joins me now from outside Downing Street. Good to have you with us, Nada. This is a scandal scarred government caught into question time and time again is competence -- confidence and of course trust. Can Boris Johnson survive this?
NADA BASHIR, CNN REPORTER: Well, look, Lynda, I think it's fair to say that we've seen Boris Johnson in a bit of hot water on multiple occasions now over the last few months, these several chapters of the party gate scandal, allegations of sleaze within the Conservative Party, historic local election losses for the party and of course, that vote of confidence in the prime minister last month.
Through it although, he has managed to hold on to power this latest crisis in government could prove insurmountable for the Prime Minister, as you mentioned that two senior cabinet ministers and I have to say two of his closest allies in government announcing their resignation yesterday.
Both issued pretty punchy statements. I can read you just a bit of that from the former chancellor, Rishi Sunak, saying the public expect government to be conducted properly, competently and seriously. I believe these standards are worth fighting for and that is why I am resigning. His resignation was announced within minutes of the former Health Secretary Sajid Javid, who also issued a similarly damning statement for the Prime Minister.
I can no longer in good conscience continue serving this government, the tone you set as a leader and the values you represent reflect on your colleagues, your party and ultimately the country, which really has brought into question, the trust that there is in the Prime Minister and his integrity.
As you mentioned that these are not the only resignations. We've seen a flurry of junior ministers of other members of Parliament's even the Conservative Party's Vice Chairman announcing his resignation live on TV. So we have seen a significant shift then.
This comes off the heels of numerous scandals but as you mentioned that what appears to have really triggered this final push for many of these ministers is of course the scandal surrounding the resignation of the deputy chief whip Chris Pincher, who of course has faces allegations of sexual misconduct, who was really landed the prime minister in trouble is questions around why he wasn't government in the first place considering that there were those historic allegations against him.
[01:05:11]
At Downing Street much in the same way we saw during the party scandal was very quick to issue denials of any wrongdoing on the part of the Prime Minister. But of course, it did later emerge that the Prime Minister was aware of these allegations, one of which was upheld and yet continued to appoint Chris Pincher to that position. So that, of course, saw the Prime Minister forced to apologize for that.
Clearly, it doesn't seem to be enough. We've heard from the opposition Labour Party leader, Keir Starmer, describing the government as collapsing in on itself. The First Minister of Scotland Nicola Sturgeon said that the end could be near for Boris Johnson's position as prime minister.
And of course, Boris Johnson later today will be facing the opposition parties during Prime Minister's question time in Parliament. But now he'll also be facing the criticisms and questions from his own backbenchers on his side of the chamber.
The real question now there is what happens next, can Boris Johnson really survive this latest crisis, this latest scandal within the government, that is clearly what we're seeing within his ministers putting that pressure on the Prime Minister to step down himself. We are seeing those resignations and if we continue to see more resignations that really could push the Prime Minister to take that decision.
But it'll be a hard decision for Boris Johnson, who are so far refrained from admitting wrongdoing on numerous occasions from stepping down, even though these are crises that would have forced any other prime minister in the past to step down from that position.
The alternative is, of course, a further vote of confidence. And we did see the Prime Minister face a vote of confidence last month, he narrowly survived that. And typically, the prime minister would be immune to this kind of vote for the next 12 months. But those rules could be changed. And that's what we're waiting to see over these coming days and weeks, Lynda?
KINKADE: Yes, certainly an interesting time right now in British politics. We are going to stay on this story. Nada Bashir in London. Thanks very much.
Well, joining me now is Dominic Thomas, CNN European Affairs commentator and professor at UCLA. Good to have you with us.
DOMINIC THOMAS, CNN EUROPEAN AFFAIRS COMMENTATOR: Great to be on Lynda. Thank you.
KINKADE: So two major resignations, both sudden unexpected. What's your reaction?
THOMAS: I mean, all the way along, Lynda, I've been saying it's not a matter of if he will be ousted, but when and so at the end of the day, it's really not so much as to whether Boris Johnson himself, resigns or survives. He essentially serves at the pleasure of the Conservative Party. They have this massive majority. The next general election does not have to be called until 2024.
And I think it's quite clear that they are trying to balance the moment as to when they get rid of him versus the way in which the Conservative Party brand through all the sort of various ways in which it's clear that Boris Johnson is undermining them gets to a point where they have to have this new leadership race and pick somebody who will ultimately go into that 2024 election.
So they're taking their time. But the more these crises come up, the more urgent it becomes to replace them before the damage is absolutely irreparable, Lynda.
KINKADE: And it certainly seems right now, Dominic, that Boris Johnson's party is falling apart around him. Talk to us about how much he is to blame and his leadership style. How would you describe it? Where does it fail him?
THOMAS: Yes, well, Boris Johnson is really characterized by just complete incompetence. And yet this incompetence is sort of on, you know, matches up then with the sort of the various offices that he's -- that he's held. And there's this kind of sort of disconnect that.
We saw him as he went into this election, when Theresa May was ultimately ousted that he was running on a single issue, which was to deliver Brexit. And I think that after all the elections and meaningful votes, and so on, so forth, the British public at the end just kind of collapsed, and just sort of wanted the sort of Brexit saga to be to be over.
And ultimately, he was elected with this historic majority, that he never really managed to overcome any of the various crises that he has faced, which are defined by a kind of process of governing, that's just a childish kind of entitlement of sort of acting, passing rules, but not abiding by them. They've just been so many crises.
And I think that that moment at the at the Queen's Platinum Jubilee when he he was booed on that particular occasion, the fact that they then lost this by election seats, the fact that his party held a confidence vote in him, there's just been this sort of gradual, systematic erosion and we're seeing it fold in on itself at this at this particular juncture.
And what's interesting, really is to see the different people that are resigning, clearly there will be a leadership race. I mean, most of these people know that they have no chance to actually win, but they're trying to save their reputations to potentially run. And ultimately, jockey (ph) for future positions in the party.
[01:10:02]
And the big dilemma here really is this massive majority that they hold on to. And I think that that is what has allowed the party to hold on to Johnson, there is no clear person to take over from him. And that's the sort of the dilemma here. And yet we just constantly see the British public speaking up and announcing their growing feelings of sort of disillusionment with the ways in which the party is running this and this issue has become a much greater issue than simply Boris Johnson. It's the Conservative Party as a whole here that is threatened going into this 2024 election. And the big question is whether they will actually recover from the damage that Boris Johnson is doing to them, Lynda.
KINKADE: And Dominic after the resignations of those two heavyweight cabinet ministers, Boris Johnson was quick to name replacements. Talk to us about the problems that could arise from that reshuffle. And do you think we will see more resignations?
THOMAS: Yes, I think it's just a matter of time. I mean, these are, it's the sort of musical chairs game. I mean, these are ministers that leave, ministers that return. They ultimately are looking. I mean, you wonder why any of them are still around them. And I think it says a lot about the cabinet members, that kind of sense of entitlement within the Conservative Party, in general.
But I think that this process will ultimately collapse when it becomes absolutely unambiguously clear that there will be an election for a new leader of the party. And I think that that's the important thing to underscore is that, yes, he's the Prime Minister. But before that he is the leader of the Conservative Party. And they have an opportunity here to replace him, and to build collegiality, to build support around a new prime minister, to just kind of put the Boris Johnson era behind them before they go into that election. And the longer this goes on, the more difficult it will be.
But so many of these figures around him, I think, are tainted and compromised because of their affiliations. And actually, because of the ways in which they have enabled this prime minister to survive with the various campaigns that they have launched to protect him, but ultimately, also to protect their own positions.
And so it's going to be interesting to see who can potentially emerge out of that pack and separate themselves from the Boris Johnson era (ph), if we can even call it that and become a legitimate candidate, not just for the leadership of the Conservative Party, but to take that party into a general election. And that's going to be an uphill struggle for whoever that person ends up being, Lynda.
KINKADE: Yes, we will be watching this closely over the coming days and weeks. Dominic Thomas, as always thank you.
I want to go to Ukraine now and the grueling battle for the country's Eastern Donbas region. On Tuesday, Ukraine reported heavy shelling in the city of Sloviansk in the Donetsk Region. Local officials say at least two people were killed and seven wounded in the attack.
Shelling was also reported in villages and towns across the region. And the local governor says there's no longer anywhere safe in Donetsk. Ukraine says heavy fighting is also underway in the Luhansk, the other half of the Donbas region.
Russia's president declared victory in Luhansk on Monday after his troops captured the key city of Lysychansk , but local officials say fighting continues on the outskirts of the region. Meanwhile, Russian backed separatists are accusing Ukraine of another attack on the city of Donetsk out of the self-proclaimed Donetsk People's Republic. Officials there say a 10-year-old girl was killed in Tuesday's attack.
Ukrainian medic who was captured by Russian forces months ago is finally free. And she's speaking out for the first time about her harrowing experience as a prisoner of war. CNN's Alex Marquardt has this exclusive report.
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ALEX MARQUARDT, CNN SENIOR NATIONAL SECURITY CORRESPONDENT (voice- over): In this Russian propaganda film, Yuliya Payevska is marched, hooded and handcuffed into a dark interrogation room. The hood yanked off harsh light blinding her.
Payevska who is Ukrainian, goes by the nickname Tayra and is a famous medic known across Ukraine. Until very recently, she was a prisoner of war, held by Russian and pro-Russian forces made to appear in the propaganda film which accuses her of harvesting organs and compares her to Hitler.
After three months in captivity, Tayra whom we met today with her husband was freed in a prisoner exchange but in her first sit down interview since then it's clear the wounds are still fresh.
YULIYA PAYEVSKA, UKRAINIAN MEDIC: There was physical abuse and psychological pressure. The extreme psychological pressure did not stop for a minute all these three months. Constantly you are told that you are a fascist, a Nazi.
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MARQUARDT (on camera): It sounds like torture.
PAYEVSKA: It was. Physical also.
MARQUARDT (voice-over): Tayra says she was deprived of food for days beaten and threatened with a death penalty.
PAYEVSKA: They kept interrogating, but at some point they realized that they would not get anything out of me. They threw me into solitary confinement into a dugeon without mattress, on a metal bunk.
MARQUARDT: When the war started in February, she headed to the brutal fight in Mariupol capturing dramatic video on a body camera she wore. In March as the Russians closed, the memory card was smuggled out by journalists in a tampon. Then at a checkpoint Tyra was recognized and taken prisoner.
PAYEVSKA: I asked to be allowed to make a call, call my husband. They said you watched too many American films. There will be no call.
MARQUARDT: She says she was told lies about Russian battlefield successes have used against her will as a character for Russian media to claim that their forces are fighting Neo Nazis. PAYEVSKA: They are absolute victims of propaganda, of a ruthless propaganda that completely destroys their ability to think critically. if it were not for this, this conflict would not exist at all, I am absolutely sure of it.
MARQUARDT: It may be some time before Tyra returns to the front lines. She also wants to train for next year's Invictus Games for wounded veterans. As the reality sets in that this will be a long war.
PAYEVSKA: This is an absolutely ruthless regime that wants to dominate the world. They would me that the whole world only had to submit to Greater Russia and this is your destiny. You have to accept, just stop resisting.
MARQUARDT: Alex Marquardt, CNN, Kyiv.
(END VIDEO TAPE)
KINKADE: Russia's war rages on in Ukraine, NATO has taken a major step towards expanding the alliance and boosting its defenses. Members signed an agreement chooser that formally starts the process of adding Finland and Sweden to the alliance. NATO Secretary General quoted a truly historic moment. CNN's Nina de Santos reports.
(BEGIN VIDEO TAPE)
NINA DOS SANTOS, CNN CORRESPONDENT (on camera): The party members of NATO agreed to sign the so called Protocols of Ratification on Tuesday. That means that the next set of paperwork is done and dusted for Sweden and Finland to officially become invitees to the bloc.
This doesn't mean that they are fully fledged members yet no, but it does mean that they can attend all the important meetings. They just can't vote at these meetings as yet. They will not benefit from the collective Article Five security protections, but they have been offered some security guarantees by some key NATO members like the United Kingdom in this interim sensitive period.
The Secretary General of NATO Jens Stoltenberg made clear that this was a win-win and a big moment both for Sweden and Finland, but also for NATO's open door policy.
JENS STOLTENBERG, NATO SECRETARY GENERAL: This marks the start of the ratification process, NATO's door remains open to European democracies, who are ready to and willing to contribute to our shared security. This is a good day for Finland and Sweden, and a good day for NATO.
DOS SANTOS: What will these two nations bring to the table? Well, substantial armies that it also well stocked and in Sweden's case in particular, promises of much bigger defense spending in the future. Sweden has its own sophisticated homegrown defense industry focusing on fighter jets, and also submarines. It also makes all sorts of military hardware that's making a difference in the battlefield in Ukraine. Finland also acquires a lot of important munitions and fighter jets from the United States. These are two countries that for a long time, since the 1990s have been engaged in joint exercises with NATO, so they know how to work with NATO.
However, Finland will bring with it an 830 mile long border with Russia that will need to be policed as soon as possible, and Sweden will probably play a bigger role in defending the Arctic and also the Baltic Sea. This is a radical redrawing of Northern Europe's security map, essentially making the Baltic region not just a NATO area, but also now an EU area as well.
It could take between six months and a year for these countries to become fully fledged members of NATO, perhaps even less. The first nation just hours after the signing process on Tuesday to ratify the membership of these countries was Denmark. Nina dos Santos, CNN in London.
(END VIDEO TAPE)
KINKADE: Well, police in Illinois say the Fourth of July parade attack was planned for weeks.
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We'll have details on the suspect's arsenal and get away dressed in women's clothes. Coming up next on CNN Newsroom.
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KINKADE: Welcome back. Turkish security forces killed a child Sunday when they fired on a vehicle carrying dozens of migrants. The Turkish officials says the driver did not obey orders to stop and a warning the video we're about to show you is disturbing. It shows rescue teams trying to help the child.
One report says the victim was a four-year-old boy from Afghanistan. 12 others were reportedly wounded in the shooting which happened you took his border with Iran. Officials say the vehicle they were used -- that was being used to smuggle migrants and an investigation is underway.
Seventh person has now died in the July 4th parade shooting in Highland Park, Illinois. The state attorney has announced the suspect in custody is facing seven first degree murder charges and more charges are expected to come. Police have revealed more information about the attack. But one thing that's still not clear is a possible motive. CNN's Josh Campbell reports.
(BEGIN VIDEO TAPE)
JOSH CAMPBELL, CNN CORRESPONDENT (voice-over): New investigative details tonight about the suspect Robert Crimo III and interactions he had with law enforcement several years ago.
CHRISTOPHER COVELLI, DEPUTY CHIEF, LAKE COUNTY SHERIFF'S OFFICE: In September of 2019, a family member reported that Crimo said he was going to kill everyone and Crimo oh had a collection of knives. The Highland Park Police Department however did immediately notify the Illinois State Police of the incident.
CAMBELL (on camera): How are these things supposed to be handled? How do you stop the shooter if someone's calling police saying hey we have a problem?
COVELLI: The police responded their -- police can't make an arrest unless there is probable cause to make an arrest or somebody is willing to sign complaints regarding the arrest.
CAMBELL (voice-over): Police say there was no probable cause for arrest at that time. But adding earlier that year they were contacted after the suspect reportedly attempted suicide.
COVELLI: This was a delayed report so Highland Park still responded to the residents a week later spoke with Crimo, spoke with Crimo's parents and the matter was being handled by mental health professionals at that time.
CAMPBELL: Also, according to law enforcement, the July 4th parade attack was planned several weeks in advance.
COVELLI: He brought a high powered rifle to this parade. He accessed the roof of a business via a fire escape ladder and began opening fire on the innocent Independence Day celebration goers.
CAMPBELL: Officials believe more than 70 rounds were fired from a rooftop in Highland Park as parade goers fled for their lives. Police say the gunman was dressed as a woman during the attack and they believe he acted alone. Seven people died and at least 30 others were injured according to officials. After the shooting, police say the 21- year-old suspect fled the scene and headed to his mother's home.
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COVELLI: Primo exited the roof. He dropped his rifle and he blended in with the crowd and he escaped.
CAMPBELL: According to law enforcement. He then took his mother's car, a 911 caller noticed it and alerted police. After about an eight hour manhunt, he was taken into custody during a traffic stop Monday night when he was arrested another rifle was found inside the vehicle.
Police are now investigating the alleged shooter social media and streaming posts under a pseudonym that show violent cartoon images depicting a young man aiming a rifle and engaging in a shootout with police. The FBI is now calling the parade route for evidence in the shooting. And police say they are now looking online for a possible motive, including the suspect's post featuring ominous lyrics like one he narrates saying I need to just do it. It is my destiny.
(on camera): Now as investigators continue to dig into the motive of the suspected shooter the state attorney is in the early stages of a prosecution. On Tuesday afternoon they announced seven charges of first degree murder one for each of the victims killed in this mass shooting. The state attorney here says that this is the first and what will be many potential charges to come. Josh Campbell, CNN, Highland Park, Illinois.
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KINKADE: Steve Moore is CNN law enforcement contributor and a retired FBI supervisory special agent. He joins us from Los Angeles. Good to have you with us.
STEVE MOORE, CNN LAW ENFORCEMENT CONTRIBUTOR: Thank you. Good to be here, Lynda.
KINKADE: So we are learning more about the suspect, two times police were called to intervene once when he threatened to kill his own family back in September 2019. And yet three months later, at just 19 years of age, he applied for a firearm owners identification sponsored by his dad that was approved. What do you make of these facts that we're now learning?
MOORE: Well, first of all, it tells me something about the father. I mean, that's just foolishness. Secondarily, it's indicative of where the system is where they -- were our system of checks and balances with firearms are. How can you three months earlier, have the police intervene when you're threatening to kill loved ones, and then be able to go out and buy this rifle. It can't be that way.
And so we are going to have to as a nation, have some tripwires, have some red flags somewhere in order to make give us at least a fighting chance of stopping these kinds of things. And the infrastructure doesn't exist. I liken it to after 9/11. We didn't have TSA, but we got it pretty quick.
KINKADE: Yes, and it wasn't just one gun he owned. He owned five guns all bought legally. And his life -- this alleged gunman's life was full of red flags. Red flag laws do exist in the state of Illinois, but they're rarely utilized apart from in one particular county, how could a red flag law effectively stop someone like this alleged gunman from legally buying weapons?
MOORE: It's going to have to be that when you have a call out like that, law enforcement call out, say, just using this as an example that he threatened to kill his family. That's got to go into some kind of database. And that doesn't mean that you're there -- we're going to use that to adjudicate something and put you in jail. But certainly that is relevant information for somebody who wants to buy a high powered fast firing long range rifle. I would think.
KINKADE: Yes, I would think too. When we look at what has been done politically, the first bipartisan bill and gun safety in 30 years was signed by the U.S. president just 10 days ago. I want to play a little of what the Republican Senator Mitch McConnell had to say, take listen.
(BEGIN VIDEO CLIP) SEN. MITCH MCCONNELL (R-KY) MINORITY LEADER: I think yesterday's shooting is another example of what the problem is. The problem is mental health. And these young men who seem to be inspired to commit these atrocities. So I think to build it, we pass targeted the problem.
(END VIDEO CLIP)
KINKADE: So he thinks the bill passed targeted the problem but clearly didn't prevent this massacre or many other massacres that have happened in recent day. And it's clear the U.S. doesn't have a bigger mental health problem in other Western countries, but it does have very easy access to high powered weapons. Clearly, something more has to happen are the changes are needed, or what else do you think can be done?
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MOORE: Well, first of all, you know, I don't disagree with him totally. We do have a mental health issue, the problem right now is we're not going to fix that tomorrow. But we can work on access to those weapons in the short term. And so we have to go at it in both ways.
And in a way I might argue that the United States has a less robust mental health system than you might find in Europe. Still what was passed the other day, is not going to impact things. I mean obviously it wouldn't impact this no matter what because the gun I believe was already purchased.
But still we have to go farther with these red flag laws with these trip wires, whatever we want to call it. We have to have a system in place and an effective and used system. You know, there is all sorts of laws on the books that nobody ever cares about, nobody ever looks at. We have to change the mental picture of law enforcement.
I mean when I was growing up if you got a DUI. I was hit by a guy with a DUI. The guy got a big fine. Nowadays, it's totally different. It changes your life and it's because law enforcement changed the way they enforce.
And I think we're going to have to have a complete change in how we enforce gun laws as a nation. Because we have the guns, you have to, you have to use the laws to make gun ownership safe for everyone.
KINKADE: Yes, there has to be better regulation. Steve Moore, retired FBI supervisory special agent. Thanks so much.
MOORE: Thank you.
KINKADE: The county coroner's office has identified six of the seven parade shooting victims.
It include 64-year-old Catherine Goldstein of Highland Park.
A young couple, Irina and Kevin McCarthy were also killed. Their two- year-old son Aiden survived, and is being taken care of by family members.
A local synagogue has identified 63-year-old Jacki Sundheim as another one of the victims. A statement says she was a former preschool teacher and events coordinator.
78-year-old Nicolas Toledo was visiting Highland Park from Mexico. He was a father of eight and a grandfather. One granddaughter says he loved fishing, painting, and going on walks with his family.
And then there's 88 year old Stephen Straus. His grandson tells CNN he was very active, he loved music festivals, the outdoors, and Sunday dinner with his family.
Soaring inflation and a severe shortage of fuel and food, Sri Lanka is facing its worst financial crisis since gaining independence more than 70 years ago. And the country's prime minister says reviving the economy will be no easy task.
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KINKADE: You are watching CNN NEWSROOM. I'm Lynda Kinkade. Thanks for joining us.
Well, out of the frying pan and into the fire. That's how Sri Lanka's energy minister has described the country's deepening financial crisis. Its worst in decades.
On Tuesday, the prime minister said talks with the International Monetary Fund to revive the economy are more difficult and complicated than before because the country is bankrupt.
CNN's Vedika Sud is in New Delhi with more. And she joins us now. Good to have you with us.
Sri Lanka now in its worst economic crisis in memory. The prime minister in negotiations with the International Monetary Fund but clearly there is no easy solution.
VEDIKA SUD, CNN CORRESPONDENT: Well, absolutely, Lynda, there isn't because the South Asian nation of Sri Lanka is bankrupt like we said. And this was announced by its prime minister running with (INAUDIBLE) to lawmakers in parliament Tuesday.
Now what he has said is that they continue to be in talks with the International Monetary Fund but they now have to present a debt restructuring program to the IMF before they get any possible bailout package.
Now, (INAUDIBLE) has promised that the wrap up talks with the IMF in June then he promised this would happen in July. Now, this has been pushed to August. And meanwhile, the crisis on the ground is just getting worse by the day.
This is an unprecedented economic crisis that Sri Lanka is facing. On Sunday its power and fuel minister went on record to say that they had just a day's worth of fuel left. And to even get money for the next shipment is a huge struggle for the government at this point in time.
Now, because of this, Lynda, you can just imagine the cascading effect it is having on the people in the ground in Sri Lanka. It's a massive shortage of fuel. There are lines as long as three kilometers, four kilometers for just a liter of fuel, because that runs that's (INAUDIBLE) household.
And because of that, there are problems even getting trucks into Colombo with fresh food and vegetables to people. So this is leading to massive food shortage for Sri Lankans as well.
You usually hear schools closing down, Lynda, when there's the pandemic or when there are extreme weather conditions. How often do you here of schools shutting down for an entire week because there's no fuel?
So people are essentially sitting at home, they have nowhere to go without fuel in their cars, also, we do know that it's getting very difficult for people to move out at this point in time. There are no taxis, private vehicles are not being seen on roads. And fuel supply is limited to essential services only at this point in time.
Now, the south Asian nation needs at least $5 billion U.S. to pull itself out of the current crisis.
There's a massive power crisis in households as well. At least three and a half hours of powers needs cutting in these homes. As of now, the situation is only getting worse by the day.
And Gotabaya Rajapaksa, the president of Sri Lanka is being obstinate. He's refusing to step down at this point, Lynda?
KINKADE: Vedika Sud certainly a serious situation, we are going to stay on this story. Our thanks to you.
SUD: Thank you.
KINKADE: I would like to bring in Padma Rao. She is the former South Asia bureau chief for Der Spiegel, and the author of "Sri Lanka: the New Country".
She joins us from New Delhi. Good to have you with us.
PADMA RAO, FORMER SOUTH ASIA BUREAU CHIEF, DER SPIEGEL: Hi Lynda. Nice to be here.
KINKADE: Can you give us a bit more context? As to the reason Sri Lanka's economy has tanked? And how it got this bad?
RAO: Lynda, one of the things, is that Sri Lanka imports nearly everything. Hardly anything is manufactured in Sri Lanka and imports have to obviously be paid for in foreign exchange. And also Sri Lanka's still known as a socialist republic. It's really a welfare-- it's always been a welfare state. So this means there (INAUDIBLE), you know, a free education, free health care, food subsidies and remember all that money flows through the hand of officials and politicians.
And one of the things that has marked with a 75 years since its independence from British colonial rule has been corruption and cronyism, and, you know, that sort of thing.
So a lot of this public money, which was meant for welfare schemes, were simply just siphoned off by corrupt officials.
And then you have, you know, the president, the current president Gotabaya Rajapaksa when he came to power in 2019, the situation was already pretty bad. And he only worsened it by lowering taxes, just to keep his election promises. And he also (INAUDIBLE) saved the little foreign exchange they had left.
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RAO: He told Sri Lankan farmers overnight that there's going to be no fertilizer. That they would have to rely on local organic fertilizer. So the crops failed and the little money the country had left, was spent, you know, in importing food. So that was another reason.
And tourism, I mean, tourism in Sri Lanka is a big source of foreign exchange. But you know, Sri Lanka has just had a series of bad luck stories. 30 years of civil war, then came the tsunami in 2004. Then came the Easter day attacks, the terror attacks in 2019.
And then you had of course, the pandemic. So virtually (ph), you know, these years have been very bad for tourism. And tourist arrivals have absolutely stopped happening.
And of course, to top it all there's been a lot of wasteful expenditure, wasteful spending on big ticket projects like, you know, new TV tower in the port city in Colombo. And all these projects that are just empty because nobody can afford to rent them.
So all in all, the words, it's a desperate situation. But not one that happened overnight. It's a cumulative effect of, you know, bad policies over 75 years, Lynda.
KINKADE: Yeah, it certainly sounds like a dire situation. Padma, I want to ask you about the plan to get Sri Lanka back on track to rebuild the economy because certainly it's going to involve more short term pain?
RAO: Absolutely, as your reporter was saying, it hasn't happened in serious meetings with the IMF since the 20th of June. But the monetary fund is, you know, obviously quite wary of acting as guarantor for that countries that have lent Sri Lanka money because that's what it needs to do if those countries are to restructuring their debt.
But according to the prime minister, he said yesterday, that this is likely to happen by August. Because they have hired a law firm which does this sort of thing. And they are going to present a series of fresh documentation -- fresh guarantees to the IMF.
And if those get approved then, we're likely to see, you know, a certain amount of money flowing in from the IMF before the year is out. But whatever is said and done, I mean it's $51 billion dollars, that's the overall external debt that Sri Lanka has accumulated.
And so, the prime minister is quite right, he said things are not going to change. Things are going to be just as grim as now at least until the end of 2023, Lynda.
KINKADE: Wow, all right. Padma Rao, we'll leave it there for now. But good to get perspective from you. Thanks very much.
RAO: Thanks Lynda.
KINKADE: Still to come: heat, fires and floods all over the world. How climate change is fueling these natural disasters.
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[01:44:51]
KINKADE: From deadly floods to raging wildfires, record breaking heat and collapsing glaciers. The world has been doing an unrelenting series of natural disasters. Millions of people are being displaced, livelihoods are at risk.
And as CNN's Isa Soares reports, experts warn that climate change is to blame.
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ISA SOARES, CNN CORRESPONDENT: A devastating sight in Sydney as parts northwest of the city are battling their worst flood in decades.
UNIDENTIFIED FEMALE: Absolutely devastating. It's really hard. But we don't know.
UNIDENTIFIED FEMALE: I think we're just doing one day at a time getting through it.
KINKADE: At least one person has died and thousands have been forced to evacuate.
In Australia's most populace state of New South Wales, authorities have declared a natural disaster.
Extreme weather events like this are happening across the world, the world's record making headlines globally.
From deforestation in the Amazon to temperatures in Italy. Authorities there have declared a state of emergency in five regions, due to widespread water shortages. High temperatures killing crops, drying rivers and even avalanches.
Seven people died after this glacier collapsed in the Italian Alps. Prime Minister Mario Draghi brought up climate change.
MARIO DRAGHI, ITALIAN PRIME MINISTER (through translator): This is a drama that is certainly unpredictable, but it definitely depends on the deterioration of the environment and the climate situation.
SOARES: Even the Pope urging action, tweeting the tragedies we are experiencing are connected to climate change.
In India, millions have been displaced in recent weeks, and 150 people have died in floods, as well as mudslides.
China recorded the heaviest rain falls in 60 years, affecting almost half a million people.
And in the United States, from coast to coast this year, an array of extreme weather events, from historic flooding to uncontrollable wildfires and more intense hurricane seasons.
FRIEDRICKE OTTO, CLIMATE SCIENTIST, IMPERIAL COLLEGE LONDON: We just see the frequency of heat waves has gone up so much. So this is very much. We don't need to do attribution studies on every single one of them, because we know already that climate change is a key driver here.
SOARES: Critics say governments are too idle in fighting climate change.
Meanwhile, experts estimate 200 million people will need humanitarian aid, due to extreme weather over the coming 30 years.
ANTONIO GUTERRES, U.N. SECRETARY GENERAL: We are seeing around the world's this cause for deep shock and anger. Rampant deforestation and worsening climate impacts are increasing forest fires and droughts.
This is outrageous and shameful. It is a global suicide in slow motion.
SOARES: A slow response, the U.N. says the world cannot afford as it faces one of humanity's biggest challenges.
Isa Soares, CNN.
(END VIDEOTAPE)
KINKADE: Let's get an update now from meteorologist Karen Maginnis. Good to see you Karen. I should tell you, friends and family back in Sydney are sending me these unbelievable images of the floods there. And in some areas, they have had more rain than London sees in a year.
KAREN MAGINNIS, AMS METEOROLOGIST: Yes, it's really been a dreadful and ongoing situation. We have an updated forecast that suggests the bulk of that moisture is going to be headed further north.
That does not mean that Sydney is not going to see precipitation, it's not going to be as heavy as some of those more northern and coastal regions. By the way, those images that you are looking at just now, that was from a cargo ship that has been adrift for the last several days. No one injured, but certainly terrifying situation with the wind gust up to around 90 kilometers per hour.
So we get these coastal lows that develop, and they just kind of meander off the coast. And because of that, rainfall can be staggering. It can produce significant rainfall to just kind of stay in place. This is kind of a seasonal event, but in this particular case, it has been extraordinary.
There, you can see the rainfall, New South Wales, over the past 24 hours in excess of 200 millimeters. Now, this is kind of a discussion about what happens with those East Coast lows.
Now the peak season is from March to August. So we're at the tail-end but by no stretch of the imagination does that mean we are out of the woods yet.
That coastal low is going to move towards the (INAUDIBLE) Sea. Some of the energy from this will move further to the north of Sydney and it could be heavy. 60 to 90 millimeters in some areas.
It looks like Tasmania may pick up some of those showers on the backside of that low pressure system. Rainfall does indicate the bulk of this is going to be further to the north. Even interior sections of Australia have seen significant rainfall as well.
[01:49:53]
MAGINNIS: All right Sydney, here is the forecast. We keep most of those showers at bay until Sunday around -- it looks like a one day event before we start to see some improvement.
Basically (ph) kind of the Sydney rainfall averages. It is a typical busy forecast. But take a look at this.
January to May -- significant rainfall. Way above average. Here's June, way below average, the driest that they have seen. Now here we are July with all of this significant rainfall totals.
All right. In India heavy rainfall most areas in the central district have seen exceptional amounts of rainfall for monsoon season. Don't want it too dry, don't want it too heavy, but here you see some of these results of the people walking through the rain waters there.
Lynda, back to you.
KINKADE: All right. Karen Maginnis, good to see you. Thanks very much.
Still to come, CNN goes to Portugal to ask a hotel owner his secret to keeping his business afloat, after (INAUDIBLE) an early closure at the start of the pandemic.
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KINKADE: Welcome back.
Climate activists glued themselves to a copy of Leonardo da Vinci's "The Last Supper" at London's Royal Academy of Art on Tuesday. The latest in a string of similar protest by the group Just Stop Oil.
On Monday, two activists were arrested in London's National Gallery after they glued themselves to the frame of John Constable's "The Hay Wain". And they covered the 200-year-old masterpiece with a modified version of the oil painting. They're calling on the British government to block licenses for future gas and oil extraction.
Well, nearly all U.S. hotels say they are experiencing a staffing shortage, according to the American Hotel and Lodging Association. It's an issue being felt around the world as the industry attempts to bounce back from the impact of the coronavirus pandemic.
CNN's Richard Quest traveled to Portugal to see how one Portuguese hotel has fared.
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RICHARD QUEST, CNN CORRESPONDENT: It is two hours south of Lisbon, where you will find Craveiral Farmhouse, nestled in the rocky Portuguese countryside. Part restaurant, part hotel and it is the passion project of the lawyer and hotelier Petro Franca Pinta.
He completed this project in 2019, and then of course, within months, disaster. Pandemic lockdowns in Europe, and his business ground to a halt. Only months after it opened.
PEDRO FRANCA PINTA, FOUNDER AND CEO CRAVEIRAL FARMHOUSE: I was thinking, this is a lifetime project, for about 30 years. It is not 18 months that will jeopardize the goal.
QUEST: But when we spoke, first of all, you talked about it lasting three or four months.
PINTA: Yes.
About term of two months, and the recovery period of 18 months. It's material for the last time of the project. So, we want to comply with the principle, keeping (INAUDIBLE).
And I remember that I told everyone saying that we want to be integrated in the community, we want to be sustainable, we want to create a positive impact in the land, in the region.
[01:54:48]
PINTA: And it's not the first challenge that we have that we're going to move back to all the values that we believe. And that was the main strength of the decision.
QUEST: How is the business doing now?
PINTA: Now it is going well. Especially we are starting the summer, the ice season in Portugal. So I am positive in terms of (INAUDIBLE) I have positive cash flow. So things are going very well.
QUEST: You can't just (INAUDIBLE) you pay the wages. It cost you a great deal of money. You told me about it.
PINTA: Yes.
QUEST: And did that pay dividends for you?
PINTA: Yes. Because I am complying with the principles of the projects, the value of the project. gave consistency, gave authenticity.
And io in terms of branding, complying with what we say that we are is increasing the value of the project.
QUEST: Now Craveiral faces the opposite problem. The customers are back, and he hasn't have enough staff to serve them as he would wish.
PINTA: That's every challenge of hiring staff, mainly in the food and beverage are. Because thereafter the pandemic, there was a huge shortage of staff.
QUEST: Do you think there has been a fundamental shift in people working in those industries. They don't want what they had before?
PINTA: I think they, they start to give much more value to balance between personal life and the work life. And hospitality is hard work. And you work when the other people are having fun.
So now, the challenge, is trying to create conditions for the staff to have that balance.
QUEST: But about you. Your management style. Your capacity for anxiety and for dealing with crisis. What did you learn about you?
PINTA: I learned to trust myself more and to be much more secure. And that the way I was doing things was the right way. So I learned that what I was saying. If you have the vision, and you fight for it you can do it.
(END VIDEOTAPE)
KINKADE: Our thanks to Richard Quest reporting there.
And thanks so much for joining us for this edition of CNN NEWSROOM.
I'm Lynda Kinkade. The news continues in just a moment with my colleague Rosemary Church and Max foster. Stay with us you're watching CNN.
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