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New Orleans Recovery Still Work in Progress; Warren Riley Sworn in as New Orleans Police Superintendent; Atlanta Police Search For Escaped Prisoner; Carlie Brucia's Killer May Get Death; U.S. Approaches 1,000 Executions; French To Tighten Immigration Rules; Press Conference In New Orleans

Aired November 29, 2005 - 15:00   ET

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

KYRA PHILLIPS, CNN ANCHOR: From CNN's world headquarters in Atlanta, Georgia, I'm Kyra Phillips.
Stories that we are working on for you right now, something you will only see on CNN, the people in this country in danger from a series of disasters. You have likely never heard of them until now.

And rebuilding three months after Hurricane Katrina -- we expect a lot of tough questions from residents at a community meeting in New Orleans this hour.

And, if you're watching me, this story affects you, a push by the SEC to change the way you subscribe to cable television -- all that and more right now.

New Orleans three months after Katrina -- schools are slowly reopening. So are businesses, and even the zoo. But, in some respects, New Orleans remains a city without a soul -- hundreds of thousands of its citizens still unable to come home, and not sure they want to.

This hour, Mayor Ray Nagin will likely face the anger and frustration, as he holds another town hall meeting.

More on that sentiment from CNN's Ed Lavandera.

(BEGIN VIDEOTAPE)

ED LAVANDERA, CNN CORRESPONDENT (voice-over): The graffiti on the wall says it all, "Vote for someone who cares," a statement that captures a growing sense of abandonment Gulf Coast residents are feeling.

TRACY FLORES, RESIDENT OF NEW ORLEANS: You can look around you. There are no people, no children playing, no lights, no water, thing that is you need.

LAVANDERA: Tracy Flores has only been allowed back to her Lower Ninth Ward home once since Katrina struck. When she found out a neighbor's house had been torn down without permission, she lost trust in the government and joined a campaign to stop the bulldozers.

FLORES: Our area still isn't open, you know, to come in to clean up, to do whatever we need to do. And -- and, you know, people are -- are disheartened.

LAVANDERA: The pace of rebuilding is so slow, people wonder if the job will ever end or, in some places, ever begin. Streets still look like dump sites. There are few places to live. Power and water are still out in many areas. Despite $62 billion in federal aid being promised for the region, Saint Bernard Parish Sheriff Jack Stephens has lost faith in the federal government's ability to help.

JACK STEPHENS, SAINT BERNARD PARISH SHERIFF: It's like when you're growing up, you know, and you always -- you know, you think your parents love you. And -- and you think that, if you ever get in trouble, or you get hurt, or you fall down, they're going to be there to pick you up and help you get your life started again. I have been a patriot my whole life, and that's how I always felt about the federal government.

LAVANDERA: He says the region is trying to stand up, but the helping hand is missing.

(on camera): Anger and frustration runs all along the Gulf Coast, but, here in New Orleans, it cuts a little deeper. They like to say here that this was a city struck by two disasters. One, they can blame Mother Nature for. The second, they say, was manmade.

(voice-over): John Biguenet says poorly designed levees crippled the city. Now he thinks little is being done to make the levees bigger and stronger. Without that, he argues, people and businesses won't come back.

JOHN BIGUENET, RESIDENT OF NEW ORLEANS: The government itself, after making glorious promises about how they would rebuild this place even better than before -- the president stood in front of our cathedral and promises us that this would all be taken care of. Months later, nothing has happened.

LAVANDERA: Biguenet is a New Orleans novelist who has been writing about his experiences here for "The New York Times."

BIGUENET: And this was an entire wall of books.

LAVANDERA: He fears, the city his family has lived in since the 19th century is in danger of disappearing.

BIGUENET: Now that we need their help, they're dithering, just the way they did when people were in the Superdome and on rooftops, basically doing nothing at all.

LAVANDERA: John Biguenet hopes the rest of the country will hear these calls for help and understand that hundreds of thousands of people are still left in the dark, and a lot of help is still needed to make it shine again.

Ed Lavandera, CNN, New Orleans.

(END VIDEOTAPE)

PHILLIPS: Well, we want to take a minute just to connect with our Elaine Quijano, who has been traveling with the president.

As you know, he was in El Paso, Texas, talking about immigration policy, and then stopped off in Denver, Colorado, for a fund-raiser.

But we are supposed to go to Elaine live in front of the camera, but we have actually got her on the phone, because, evidently, the protesters gathered around the bus, and Elaine couldn't even get off the bus to get in front on that camera.

Elaine, what is going on? What are the protests about, and what happened?

ELAINE QUIJANO, CNN CORRESPONDENT: Well, it's just a very brief interruption, really, in our schedule, we should tell you, Kyra.

What happened was, as we were approaching the Brown Palace Hotel here in downtown Denver, the president went through. And then the two press buses carrying all of the national -- the media -- actually got stopped. It was a group of about 100 to 150 protesters that just very briefly blocked press buses. But they were a very vocal crowd. They were carrying signs, some of them reading -- the signs that said "Bring our troops home now, where they belong" -- a lot of angry gestures, and many of these protesters shouting, some of them banging on the bus as well.

And it was a little bit of a tense moment there. It was unclear exactly if they knew whether or not we were the media, who they thought we were, exactly. But that, essentially, delayed us just a little bit. It wasn't more than five minutes, though, that the situation was brought under control, a path was cleared for us, and we were allowed to go through -- but really, these demonstrators very angry, protesting the Iraq war, obviously very unhappy with the president, with President Bush's policies.

PHILLIPS: Oh, we can see that are. Obviously, we're getting the big -- the big flying middle finger there on videotape. Apologize to our viewers about that -- but, obviously, upset about the war, these protesters.

Elaine, what fund-raiser was the president coming into Denver for?

QUIJANO: Well, this is a fund-raiser for Congresswoman Marilyn Musgrave.

And the president -- actually, this will be the second time in two days that he is attending a fund-raiser. Last night, it was for Senator Jon Kyl of Arizona. But the president, in addition -- on this two-day swing through Arizona, Texas, and Colorado, the president is focusing on immigration. That has really been the main focus. He delivered remarks in Tucson yesterday, also delivered some impromptu remarks in El Paso today.

So, this is, really, sort of the last leg, here in Colorado, before he returned to Washington. He hasn't been in Washington since the Thanksgiving holiday. So, after this fund-raiser, the president will be returning to the White House.

PHILLIPS: All right, Elaine Quijano, I just -- get off this videotape.

(LAUGHTER)

PHILLIPS: Elaine Quijano, thank you so much.

Some protesters there, obviously, anti-war protesters, coming up on the media bus there, as the president arrived in Denver, Colorado, as Elaine was saying, for a fund-raiser -- will be working his way back to the White House. And, of course, there's a speech tomorrow in Annapolis that he will be giving on the war in Iraq. Once again, that was our Elaine Quijano there, traveling with the president.

Well, he's already been on the job for two months. Today, though, Warren Riley officially can be called New Orleans' top cop. The 23 veteran -- 23-year veteran, rather -- of the city's police force was sworn in as superintendent last evening.

The mayor decided last week to make Riley's temporary assignment permanent. He's now handling a department that has lost about 260 officers since Katrina hit. Most of those are facing disciplinary action for abandoning their posts during the crisis or for their behavior in the days that followed.

(BEGIN VIDEO CLIP)

WARREN RILEY, NEW ORLEANS POLICE SUPERINTENDENT: We will lose a few more people over the coming months, I'm sure. A lot of people can't stand being away from their families, being homeless.

But, when you consider everything that we have gone through, the vast majority of officers have relatively good -- the morale is relatively good, considering.

(END VIDEO CLIP)

PHILLIPS: Well, focusing on the future, that's what he's doing, and getting beyond the controversy. That's the goal of those entrusted with keeping the peace in New Orleans.

CNN's Jonathan Freed with the police report card.

(BEGIN VIDEOTAPE)

RAY NAGIN (D), MAYOR OF NEW ORLEANS: I, Warren Riley...

RILEY: I, Warren Riley...

JONATHAN FREED, CNN CORRESPONDENT (voice-over): Superintendent Warren Riley takes charge of the New Orleans Police Department with his work cut out for him, rebuild a shaken police force in the midst of a shattered city.

(on camera): And what kind of an opportunity is that giving you, in terms of how you're going to police the city?

CAPTAIN MARLON DEFILLO, SPOKESMAN, NEW ORLEANS POLICE DEPARTMENT: We are really excited about the opportunity to -- to start with a clean slate.

FREED (voice-over): Captain Marlon Defillo is the department's main spokesperson. The force is trying to wipe away images of abuse and corruption that plagued police here for years, images re-enforced by allegations some officers were among those who looted stores in the aftermath of Hurricane Katrina and patrolled the streets in commandeered Cadillacs.

And there was this in October, a man police claimed was intoxicated, under arrest, roughed up by officers on the city's famed Bourbon Street in the French Quarter.

(on camera): Are you concerned that, when people think about that incident, that, in their minds, they are thinking, well, this is just a department whose officers are, for lack of a better word, just simply fried by -- by what they have been going through?

DEFILLO: I would want people to -- to look at that incident and say, it was bad, it was unacceptable, but guess what? The police department did the right thing, and they are dealing with those -- those two officers -- or three officers.

FREED (voice-over): Defillo says, those three officers are still on suspension, with charges pending.

DEFILLO: When you see an isolated case, as you did on Bourbon Street, it -- it tarnishes everything else that was -- that has been done. It overshadows the heroic efforts of those men and women who jumped into contaminated water, who have sores on their bodies now, who are sick.

FREED: But some did not report for duty when Katrina hit, he says about 250 officers. The majority were stranded, like everyone else, and couldn't get to work. But about 100 officers are now being interviewed to determine if they were deserters.

DEFILLO: And, sometimes, it can be very difficult to make that -- that -- that distinction between, do I take care of my family or do I take care of my fellow officers and the citizens that I serve?

FREED: The new superintendent is eager to shift the focus to the future, determined to get back to basics, like old-style community policing, with more officers walking beats. And there is hope that, with help from the FBI, the force will be ale to track hardened criminals trying to resettle in the city, and be ready to crack down on them.

Jonathan Freed, CNN, New Orleans.

(END VIDEOTAPE)

PHILLIPS: An update now on some grim statistics from Louisiana -- seven more bodies have been recovered in the aftermath of Hurricane Katrina. That brings the number of known dead to 1,086 -- all but 19 killed by that storm.

Two hundred and seventy bodies have yet to be identified. The state says that 48 percent of the victims were African-American. Forty-six percent were white. Thirteen percent were Hispanic.

Well, we're going to talk to two New Orleans residents coming up next. We're going to find out their perspectives on how things are going and hear their personal stories.

We will be right back.

(COMMERCIAL BREAK)

(MUSIC)

PHILLIPS: Eighty percent of New Orleans was flooded when Katrina hit, and the levee broke. So, you can just imagine, the city is still cleaning up. Already, crews have collected 3.5 million cubic yards of garbage and debris. That's more than three times the amount of rubble at the World Trade Center in New York after 9/11.

Seven hundred and one businesses have been given the go-ahead to reopen. And that accounts for about only 18 percent of those that were in business before the storm. And the city's neighborhood -- well, Algiers is the only one -- or the only place where power has been fully restored.

Joining me now from Metairie, two New Orleans residents. Deidre Richardson is a former nursing home activities director who is still living in a hotel in Metairie. And Dr. Lincoln Pranikoff is trying to get his practice back on track, with so many of his patients scattered to the winds.

It's great to have you both with us -- with us.

DR. LINCOLN PRANIKOFF, HURRICANE KATRINA EVACUEE: Thank you, Kyra.

DEIDRE RICHARDSON, HURRICANE KATRINA EVACUEE: Thank you.

PHILLIPS: Deidre, let's start with you.

What have been the biggest challenges to this point?

RICHARDSON: Well, coming home to nothing. We lost everything. We had about eight feet of water in our neighborhood. And it -- it was so devastating, when we got home and -- and saw the condition that everything was in.

PHILLIPS: What are you focusing on right now? Are you -- are you looking for a job? Do you want to stay in New Orleans? Have -- have -- are you getting the money that the government is supposed to be giving you?

RICHARDSON: Yes. I'm -- I'm getting the money. And I -- I am going to stay in New Orleans.

And, right now, I'm looking for a job and trying to find somewhere permanent to stay, until my house can get back up and running.

PHILLIPS: Do you still want to be in a nursing home, working in a nursing home?

RICHARDSON: Yes.

PHILLIPS: Or are you open to anything?

RICHARDSON: Yes.

(LAUGHTER)

PHILLIPS: Yes and yes.

(LAUGHTER)

PHILLIPS: Lincoln, what about you -- the biggest challenges for you at this point?

PRANIKOFF: Well, two challenges, Kyra.

The first is trying to rebuild and relocate my practice, which was located in the devastated area of New Orleans East. And that occupies a large amount of my time, trying to go through the practical measures in overcoming the daily hurdles to try and get a practice up and running.

And the second thing has been separation from family. Our son is finishing this semester of high school up in Saint Louis, and living with family, while my wife and I are down here in New Orleans. And we have been traveling back and forth to see him on weekends, and hope to have him back in New Orleans to finish up his senior year of high school.

PHILLIPS: So, you do want to stay in New Orleans as well. You want to get a practice up and going. And you don't want to leave the city either.

PRANIKOFF: No. No. We're doing everything we can, within our power, to try and stay here in New Orleans. We love this community. This community has been very good to us. We feel an important part of it. And we certainly would like to remain so.

PHILLIPS: Well, this hour -- the reason -- one of the reasons why we wanted to talk to both of you is because, this hour, Mayor Ray Nagin is supposed to hold this community forum, where -- where residents can come and basically let off steam and -- and try and get some answers.

Obviously, you two are with us. But I want to know what you would say to the mayor. What would you say? What would you ask the mayor, if you were able to go today? Deidre, let -- let's start with you.

RICHARDSON: If I was able to go, I would basically ask the mayor what will we do about housing after FEMA decides on the 7th of January that they are not going to pay anymore, because, like I said, right now, I am in a hotel. And, after that time, I (AUDIO GAP) be homeless.

PHILLIPS: We're having a little bit -- there we go -- we were just -- we were losing the signal, it looked like there, for a second. But I think we still have you both.

All right.

So, your big concern is housing. You want to know when you can get out of that hotel, pay that bill, and start getting into a home, right, Deidre?

RICHARDSON: Yes.

PHILLIPS: All right, Lincoln, what about you?

PRANIKOFF: I think the two big concerns are (AUDIO GAP) housing, first of all. Without (AUDIO GAP) housing, people can't come back to the city. Businesses are (AUDIO GAP) going to be able to -- to get up and going.

And the second concern and -- and, really, the major one -- is flood protection. Without assurances of adequate flood protection (AUDIO GAP) very best to prevent a recurrence of what has happened over the last several months. We need to have better flood protection. And without that, I think many residents will choose to stay away from the city, and many businesses will either choose to leave the city or not to return.

PHILLIPS: Do you think now, Lincoln, that, finally, those that are running New Orleans and running Louisiana, whether it be the governor or the mayor or the Army Corps of Engineers, do you -- do you finally see action, with regard to dealing with those levees?

PRANIKOFF: It's very frustrating. I -- we see signs, but the progress is very slow.

PHILLIPS: We had -- we had a feeling that was going to happen.

We -- we are having -- that's actually a studio that we use there in Metairie. And we had a bad connection. And it was, obviously, going in and out. We will try and bring Deidre and Lincoln back.

But, basically, we wanted to talk to Deidre Richardson, a former nursing home activities director, still living in a hotel there in Metairie, and also Dr. Lincoln Pranikoff, a Garden District resident. He's trying to get his practice up and rolling again.

And we wanted to talk to them to get a feel for what they were dealing with them, as we wait for the New Orleans mayor, as he gets ready to meet with some of his constituents, who, in a recent town hall meeting, have bombarded him with questions, as you well know. That's about to get under way. And we're going to bring it to you live, as soon as it starts.

LIVE FROM is going to check the markets next, too.

We will be right back.

(COMMERCIAL BREAK)

PHILLIPS: We are getting live pictures now of the president of the United States attending a fund-raiser for Congresswoman Marilyn Musgrave there in Denver, Colorado.

We're monitoring this to see, of course, if he says anything about the war in Iraq -- his speech coming up tomorrow at Annapolis. He might talk about immigration policy. We will see if there's any Q&A.

But, as you know, our Elaine Quijano traveling with the president. There were some anti-war protesters that surrounded the media bus. And reporters couldn't get even off the bus, as the president was making his way to this fund-raiser -- a little added drama there, as he touched down in Air Force One there.

We will continue to monitor the president's speech, bring anything to you that could be of interest.

Well, the lights are back on in Detroit now after a partial blackout that shut down a major border crossing. The outage struck a large chunk of the Motor City's East Side today, forcing a tunnel linking Detroit with Canada to close. It's now open again. The lights were out for more than an hour-and-a-half. Some 20,000 customers were in the dark, before power was finally restored.

Now, the blackout is blamed on a faulty air-handling system at an electrical station.

Well, retailers have more to cheer about today. Online sales were strong for the post-Thanksgiving Monday.

Susan Lisovicz with more from the New York Stock Exchange.

Hey, Susan.

SUSAN LISOVICZ, CNN CORRESPONDENT: Hey, Kyra.

Well, the retail industry has really tried to drum this up as the online equivalent of Black Friday. But there is anecdotal evidence to show that lots of shoppers let their fingers do the walking Monday, after returning to work from the Thanksgiving weekend. Visa says it saw a 26 percent jump in online spending on a name retailers call Cyber Monday.

"USA Today" reports, a lot of folks waited until late afternoon to finish shopping, the peak coming between 3:30 to 4:00 p.m. Eastern time, when 1.8 million users per minute hit sites tracked by research firm, Akamai.

This is a good time to mention that an increasing number of organizations monitor employee Internet use -- Wal-Mart, Staples and Barnes & Noble all reporting a surge in traffic on their Web sites.

We will get a better picture of the retail scene this Thursday, December 1, when retailers report November sales figures -- the debate continuing on the state of the housing market. New home sales posted a surprise jump last month, indicating there is still some air left in that housing bubble.

A government report shows newly built homes selling at an annual rate of $1.42 million. That's the highest on record -- but the report also pointing to a cool down in home prices. Just yesterday, we saw a big slowdown in sales of previously owned homes. Higher mortgages -- mortgage rates have been applying pressure to the housing market.

We have seen a little bit of pressure on Wall Street today. We had a nice rally early in the day. But it's fizzled out -- the Dow industrials still on the plus side, up 10 points, the NASDAQ composite down three.

And that's the latest from Wall Street.

LIVE FROM continues right after this.

(COMMERCIAL BREAK)

PHILLIPS: All right, more information on that inmate that cut loose right out of that van in downtown Atlanta, Georgia.

Tony Harris working it from the newsroom -- Tony.

TONY HARRIS, CNN CORRESPONDENT: Working it and working it, Kyra.

We have got some new information for you, a name and a picture. Let's sort of recap where we are in this story. We have been reporting it all afternoon long.

Police right here in our own backyard, in Atlanta, Georgia, have been on the search for an arrestee, a prisoner who escaped right here in Atlanta. And we have a name and we have a picture. His name is Elton Daniels. And you will have a look at the picture here in just a moment.

Here's the story. He was arrested on charges of drug possession and a concealed weapon. And, at the time, during -- earlier in the afternoon, we were telling you that police were telling us he wasn't considered armed and dangerous. That is clearly alluding to the fact that he didn't have a weapon when he made his escape from the van.

But listen to this list of charges here: possession of marijuana, possession of a -- of cocaine, with intent to distribute, possession of a concealed weapon, carrying a concealed weapon, and carrying a pistol without a license. Obviously, he is dangerous. And here's the story, Kyra. He was being transported to the Fulton County Jail, when he, apparently, just picked the lock on the back door of the van and made his escape. Daniels was last seen wearing a -- a brown jacket with orange trim. And he is described as being 6 feet, 1 inches tall -- and, once again, Kyra, still at large, still a lot of police activity going on.

At last check, the search was pretty much focused on an area south and west of downtown Atlanta -- more information to come, Kyra.

PHILLIPS: All right, Tony Harris, thank you so much.

HARRIS: Sure.

PHILLIPS: Well, a talented mechanic, an affectionate and loving father. Descriptions of convicted killer Joseph Smith, from friends who are asking a court to show him mercy. Smith was convicted about a week and a half ago, in the abduction, rape and murder of 11-year-old Carlie Brucia. Now a jury must decide whether to recommend the death penalty, or life in prison without parole.

The judge will have the final case in Smith's fate. Carlie's mother took the stand yesterday to describe life without her daughter.

(BEGIN VIDEO CLIP)

SUSAN SCHORPEN, CARLIE BRUCIA'S MOTHER: I can no longer watch her grow. I no longer can plan for homecoming, and shop with her for a gown. Proms, birthday parties, her wedding day, her children, my grandchildren. These dreams are no longer days I will share with my daughter Carlie.

I can only imagine her in a wedding gown walking down the aisle. Now that's a dream that I no longer look forward to. I am not able to cuddle and hold my daughter. I can no longer hear her precious, innocent soft voice with the silly giggle. I don't have her to talk to. She was and still very special to me and I miss her.

I lost the light of my life, my buddy, my best friend. Most of all my daughter. I cry for her all hours of the day. I cry for her at night. I am broken. I will never heal. I will never have closure. And never again have my daughter by my side. I am in physical pain all the time.

(END VIDEO CLIP)

PHILLIPS: Lawyers for several media outlets have asked the Florida Supreme Court to grant them access to crime scene photos and videos in that case. If the court says yes, the media would not be allowed to publish, broadcast or post the evidence on the Internet.

Ohio today carried out the 999th execution in the United States since the death penalty was reinstated in 1976. Convicted killer John Hicks offered a tearful apology. That was not the case with convicted killer Eric Nance, who was executed last night in Arkansas. With the number closing in on 1,000, we decided to take a closer look at executions across America.

(BEGIN VIDEOTAPE)

PHILLIPS (voice-over): Nearly half of all executions have been conducted in just two states: Texas and Virginia. They have executed 45 percent of the U.S. total since 1976. Oklahoma, Missouri, and Florida round out the top five. Thirty-seven of the 50 states provide for the death penalty in law.

Eric Nance is the 830th American killed by lethal injection, by far the most common method used in the United States. But it's not the only one. Believe it or not, death by hanging and firing squad are still legal in a few states. Other methods include the gas chamber and electrocution, which is still used in ten states.

Last year, 97 percent of all known executions took place in China, Iran, Vietnam and the United States. But China executes far more people than the rest of the world's governments combined. Amnesty International says based on figures: it estimates 3,400 death sentences were carried out there in 2004 alone. But a delegate at the National People's Congress said that: early 10,000 people are executed each year in China.

(END VIDEOTAPE)

PHILLIPS: France says it will no longer accept immigrants nobody else in the world wants. The government is unveiling plans to tighten immigration controls, part of a response to the violence that spread across the country this month.

Many French born children of Muslim and African immigrants took part in that unrest. French Prime Minister Dominique de Villepin says that his government is working to make sure they feel part of French society. He spoke exclusively with CNN chief international correspondent, Christiane Amanpour.

(BEGIN VIDEOTAPE)

DOMINIQUE DE VILLEPIN, FRENCH PRIME MINISTER: But it is true that the feeling of discrimination, the feeling of maybe not having the same equal chance, but what is interesting is that most of these young people, they want to be 100 percent French. They want to have equal chances.

So it is really our goal now to answer their demand and to move and to put as a priority a lot more that needs to be done on housing, on education, on employment. And this is going to be on the agenda of our government during the next weeks and months.

CHRISTIANE AMANPOUR, CNN CHIEF INTERNATIONAL CORRESPONDENT: The majority of these people who are in the bonniers (ph) are black, are of North African origin, and they feel that they -- there are not only no opportunities, but no role models. There are no minorities in your parliament...

DE VILLEPIN: Yes. AMANPOUR: ... none in your news organizations. None in the top level of French...

DE VILLEPIN: But they don't want to be recognized. They don't want to be recognized as Muslims or blacks or people coming from North Africa. They want to be recognized as French, and they want to have an equal opportunity during their life.

AMANPOUR: So what do you say then to somebody whose name is Mohammed, who knows that even if he has the best grades from the Sorbonne, his resume, his CD (ph), will be rejected five times more often than somebody who's called Francois? That's a fact.

DE VILLEPIN: Well, the first -- the first question is to everybody in this country. We have to answer the question and try to solve it.

Nobody can accept that. This cannot be a fatality. We want to change this mentality, and already we've seen a lot of initiatives. Take, for example, a lot of companies, French companies that have decided to have a more diverse recruitment in their own companies. So we should change that.

We have -- many decisions have been taken during the last years. For example, (SPEAKING FRENCH) anonymous, which allows the company to choose people without knowing which race or which religion.

(END VIDEOTAPE)

PHILLIPS: Well, another story that we're following overseas, on the edge of starvation. That's the grim reality right now for millions of people in the African nation of Malawi. Many are surviving one day at a time and many don't make it at all.

CNN's Jeff Koinange is seeing the desperation first hand.

(BEGIN VIDEOTAPE)

JEFF KOINANGE, CNN CORRESPONDENT (voice-over): The hills of Nsanje deep in Malawi's hungered ravaged south were once lush and green. Now they are parched and brown. And drifting across the valley, the all too familiar sound of mourning in the village of Bukane (ph).

The lethal combination of hunger, poverty and disease that stalks much of southern Africa has claimed another victim. On this day, the people are mourning 35-year-old Lyfan Kapanda (ph). His family says he died of pneumonia, a polite way of saying AIDS.

In some parts of Malawi, up to one-third of adults are HIV positive. It's also likely that Kapanda's resistance was weakened by a lack of food. This year, drought has cut the maize crop by 25 percent, and Malawians are crying for help. Experts estimate that nearly half of Malawi's 10 million people face starvation in the coming months if more help doesn't arrive on time. And many people here fear that if the long-awaited rains don't arrive on time, funerals like Lyfan Kapanda's are only set to increase. Further south in what was once the country's rich agricultural heartland, a fourth straight season of low yields and failed rains have reduced these people to eating wild fruits and berries.

This is a food distribution center run jointly by the World Food Program and the Irish NGO. Thousands of Malawians have been lining up here for hours, under a scorching sun, waiting for hand outs. Women with children, children on their own, portraits of hunger, fatigue, depression, Despite the suffering, some still manage a smile.

Rose Maisson walked 10 kilometers to the center with four of her 11 children. She is hoping she can convince the aid workers that the rations she's getting just aren't enough. She needs a little extra food for all the extra mouths she has to feed. Including 6-month-old twins Robert and Richard. We haven't eaten in three days she says.

ROSE MAISSON, MOTHER OF ELEVEN: I have to feed more people with less and less. What will happen when the food runs out? It's a question few here are willing to answer in these trying times.

PENELOPE HOWARTH, WORLD FOOD PROGRAM: We don't have enough food for the people that we need to feed, and unfortunately our food is fast running out.

KOINANGE: Penelope Howarth says the World Food Program's appeals seems to be falling on deaf ears. It launched an appeal for $88 million for Malawi, but so far its received 28 million. The result, empty food warehouses.

HOWARTH: So really what we're looking for at this point is cash donations, which we can then expedite the procurement process because it's really, the window is closing. We've been saying that for months, but really now, it's the end of the line. So we really need those donations as soon as possible so that we can buy the food.

KOINANGE: Several hours of waiting and Rose Maisson finally makes it to the front of the long line. She is registered by the officials, signs the form with a simple thumbprint, and heads to the warehouse to collect her quota.

She's given her share of dried vegetables, some cooking oil, and the all important 50 kilogram sack of corn or maize meal which she has to carry on her head along with one of her babies permanently strapped to her back.

Rose gets some assistance while a son carries his younger brother on his back. They begin the long trek home. At least they have food for two weeks. And then, well, that depends on people and governments far beyond this ravaged land.

Jeff Koinange, CNN, Nsanje, in southern Malawi.

(END VIDEOTAPE) PHILLIPS: And we'll be hearing more from our Jeff Koinange all week. He'll be bringing us these interesting reports from Malawi and hopefully talk to him live tomorrow about what he's seeing and observing there.

Meanwhile, here back in the United States, Mayor Ray Nagin in New Orleans has begun his town hall meeting. We're going to check in on that right after a quick break.

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PHILLIPS: Take a look at this picture. It grabbed our attention. That's for sure. The area that's all lit up, that's Metairie. Then you have got the 17th Street Canal, and right on the other side, see all where it is pitch black? That's Lakeview. You remember Lakeview, one of the areas that got hit the hardest when Katrina hit and that there was the breach in the levee.

You can see that power still an issue, just one of many issues that residents are talking about today with the Mayor Ray Nagin as he is holding the town hall meeting. It got underway just a little while ago. We want to take you to it live and listen in, and just see what residents are telling the mayor.

MAYOR RAY NAGIN, NEW ORLEANS: ... manager for Entergy, and maybe he can address some of your concerns.

UNIDENTIFIED MALE: Can you hear me okay?

QUESTION: Yes, I can.

UNIDENTIFIED MALE: How's that? The area the city you're talking about, we did have a lot of water in the gas mains, the low pressure gas lines that were affected. And although you may not have had water in your house, and maybe not even in your neighborhood or on your block, because of the design of the gas system, it's a network system. It's basically built like a spider web.

QUESTION: I understand that.

UNIDENTIFIED MALE: And the water can enter the system from an area three, four blocks, a mile away. And once it gets in that system, it's a process we use where we have to tap into the main, and basically suck the water out like you would suck water out of a cup with a straw. And this case we're sucking water out of a bathtub with a straw.

QUESTION: You know, I understand that but, there's a house behind my two houses that have gas. That's what I don't understand. The lady on the right of me has gas because you didn't turn hers off.

UNIDENTIFIED MALE: The good news is then -- I'm sorry. The good news is, if the houses near you are starting to show up with gas service, then you're not far behind because what they do is -- they call it chase water trouble. They follow the water where the water is seeping to the lowest paint points in the gas main. And apparently the area that you're being served by is the low point that's preventing the gas to get to your area. And what -- I don't know exactly. If you would come see me maybe, and give me your specific address, I will go ahead and get some information specifically for your area to let you know what the ETA is on getting gas.

NAGIN: OK. Well, if you could come on the side and, you know, give me specific information we'll try to accommodate you.

QUESTION: Thank you.

NAGIN: Thank you.

UNIDENTIFIED FEMALE: Ma'am, you can begin your question. That's not our mic.

QUESTION: All right. Good afternoon, mayor. I'm one of your seniors, you say you're worried about them. So I have been here once concerned that a house that is leaning on mine, to have it removed.

NAGIN: Yes.

QUESTION: I talked to my friends that are away from here. I have no hope unless you do this where I can start working on my house.

NAGIN: So, the house is still leaning?

QUESTION: It's still on my house.

NAGIN: Really? All right. Let me get that address again. I'll give it over to the loud speaker. Let me get the address again.

UNIDENTIFIED FEMALE: Fill out your questionnaire and hand it to the young lady right here.

NAGIN: I'm going to -- yes, and give me that address after -- before we leave. So I want to personally follow up on that since this is her second time.

QUESTION: Thank you.

QUESTION: Good afternoon, everyone. One of my seating mates asked me, who am I. I'm a New Orleans citizen, OK, who have a vested interest in the recovery of New Orleans. It's a hard thing to believe that the United States of America is spending nearly one billion per week in Iraq and here in New Orleans, United States, we're being neglected.

Now, why do we have to beg and plead with our president, our Congressmen, our elected leaders to tell them that we need help when it's on the media every day? OK? This is the United States of America. Your young lady mentioned earlier that we did rebuild Japan after destroying Japan. This is New Orleans, a very specific cultural design. I love gumbo. I love New Orleans. Secondly, we as the New Orleans citizen and citizens, our first steps we have to show the country that we are rebuilding. When you go over the high rise, when you come down the high rise, there is no signs of rebuilding.

We need to clean up the roads. And if the Department of Transportation, the state is not going to do it, we need to do it. Get them prisoners out there, pick up this trash. We need to show them that we are actively participating in our recovery.

Talk with Kathleen Blanco, get the person who handled the wardens for the prison to get out there and pick up the trash, this litter, and show them that we are trying to start somewhere. But right as it stands, now, New Orleans, United States of America, we are citizens, so we demand that our Congress, that our president step up, step up and be there for us because we have paid our tax dollars. Thank you.

UNIDENTIFIED FEMALE: Thank you very much.

NAGIN: Thank you, man, thank you. Thank you. Yes, ma'am.

QUESTION: Good evening.

NAGIN: Good evening.

QUESTION: My name is Heloise Williams (ph), and I'm from the Lower Algiers community. And as a community activist, well, Mr. Mayor, I know you don't see me too often but I'm there to say look at my community. Right now, what I see I don't like. We have been -- Katrina has passed and gone, but we're still living in debris, and we say we organized to move all of this out of the way, that work can be done. Still it's months now.

I came home on the 5th of November. Till this day I'm still trying to get part of my utility back. Cox Cable. I have -- I haven't been there but I got a bill. And, yes, I haven't been there but I got a bill. You know what I'm saying?

We need to stop playing games with people and stop -- thinking everybody is naive, dumb, stupid and crazy, because I won't be that, either one of them. I wants my rights.

I don't want to pay energy, anything, and say I'm wait later for them to pay me back because they are not going to pay me back. I'm not looking to pay no two or three hundred dollars up front.

I wasn't at the party that caused y'all not to have the money when it come time to be accountable for the money. I was not there. So I'm not going to be responsible for anything that's not my doing. You know what I'm saying?

Mr. Mayor, I want to say to you, before I quit talking about, I want to say thank you to you for RTA (ph). You know, when I got on the bus today, the man said, "no fare." I say, "what?" I couldn't believe it. I say, oh, I say thank you Mr. Mayor for that. But there's a whole lot of things that keeping us from functioning as properly -- as proper human beings. I have a home. My home was not damaged but a little bit. It's livable. But because of the -- because of the debris and all of this around about me, I can't get nothing done.

NAGIN: Can you -- you said you live in Algiers?

QUESTION: Yes, I live in the Lower Algiers. In the cutoff.

NAGIN: In the cut.

QUESTION: In the cut.

NAGIN: I tell you what, see that lady right behind you, give her your address and, you know ...

PHILLIPS: Free bus fare that's about the only good thing we heard out of the town hall meeting as we just checked in here for a little bit in New Orleans with the mayor, Ray Nagin.

A lot of residents coming and talking about the fact that trash is still not getting picked up. Gas service still not up and running in many neighborhoods. Seniors saying they are still dealing with homes on top of homes in their neighborhood.

And then one gentleman talked about all the money going over to Iraq. Why the billions of dollars going to Iraq and then there are people still suffering here in the United States? There in New Orleans. With no gas service, no trash service.

As a taxpayer, he was coming forward saying, look, we deserve more than this. The mayor of New Orleans, Ray Nagin, still listening to a number of residents coming forward and telling him how they feel and how they are frustrated still three months after Katrina hit.

We're going to talk with some New Orleans residents joining us. From Metairie, Deidre Richardson (ph), a former nursing home activities director, and also Dr. Lincoln Pranikoff, he's trying to get his practice back on track. We'll see what they think about what these residents had to say. We'll be right back.

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PHILLIPS: Now we're still monitoring the town hall meeting in New Orleans, Louisiana. Three months after Katrina hit the mayor now, and other people on his staff, listening to residents as they are still frustrated without power, gas, without trash pickup. We're learning a lot by monitoring this.

My guess is "THE SITUATION ROOM" in a couple of minutes with Wolf Blitzer will pick up with this and listen in and tell you what they're saying. We'll take a quick break. More LIVE FROM after this.

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That does it for us. We'll be back here in an hour.

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