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Controversial Port Security Deal Delayed; Suicide Attack Thwarted on Saudi Oil Refinery; Life After Work; Inside the KKK; Olympic Update; Tax Questions

Aired February 24, 2006 - 15:00   ET

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


FREDRICKA WHITFIELD, CNN ANCHOR: A suicide mission in the Persian Gulf -- details are still sketchy. And everything we know is from the Saudi government.
But we are told, at least two cars loaded with explosives tried to get close to a large oil refinery near Dammam. There was a shoot- out, an explosion.

CNN's Henry Schuster has more.

(BEGIN VIDEOTAPE)

HENRY SCHUSTER, CNN CORRESPONDENT (voice-over): A terrorist attack on a Saudi oil facility -- until now, the nightmare scenario.

Abqaiq, the target of today's attack, processes two-thirds of crude oil pumped from Saudi wells -- another tempting target just an hour's distance away, Ras Tanura, the world's largest oil refinery -- not hard to do, says former CIA officer Robert Baer.

ROBERT BAER, FORMER CIA OFFICER: I could sit down, with my training in the CIA, and people I know, and do a concerted military attack on Saudi facilities, standoff attacks with rockets, and take five million, six million barrels off the market.

SCHUSTER: When we visited the oil facilities 18 months ago, we saw a series of checkpoints, double fencing, security monitoring -- hidden from view, Saudi security forces and air support from nearby bases. Perhaps most importantly, the facilities are spread out over vast distances, making it hard to target a single place. Aramco's chairman was confident at the time, his facilities were well- protected.

ABDALLAH JUM'AH, PRESIDENT & CEO, SAUDI ARAMCO: We always have drills about what-ifs, and, therefore, a -- even a terrorist incident, if it were to happen, it's not going to be worse than a -- an industrial incident in a volatile industry like ours.

SCHUSTER: In today's attack, the terrorists apparently breached an outer cordon, but were stopped about a mile from Abqaiq's main gate -- proof, the Saudis say, that their security system works -- not enough, perhaps, to quell a nervous market, which knows that al Qaeda's leaders have called for more attacks on Saudi oil facilities.

Henry Schuster, CNN, Atlanta. (END VIDEOTAPE)

WHITFIELD: Will a delay diffuse the controversy over a Middle Eastern company's deal to assume the management of six U.S. seaports? That's the question in Washington today, now that Dubai Ports World has agreed to give Congress more time to consider security issues and President Bush more time to offer reassurances.

Here's CNN White House correspondent Elaine Quijano.

(BEGIN VIDEOTAPE)

ELAINE QUIJANO, CNN CORRESPONDENT: President Bush again condemned the attack on a Shia holy site in Iraq and also denounced the violence following it, which has left more than 100 people in that country dead.

Now, the president made his remarks during a speech before the American Legion here in Washington -- the president saying that, despite such violence, Iraqis have made known that they do want freedom and democracy. The president noted that past elections have brought out large numbers of voters in Iraq, but he also warned that the terrorists would continue what he said was their campaign of violence and destruction, and he decried the bombing of a Shia shrine in Samarra this week.

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: The senseless attack is an affront to people of faith throughout the world. The United States strongly condemns this cowardly act of terror and the subsequent attacks on other mosques and holy sites in Iraq.

QUIJANO: Now, another issue that's front and center for this White House, that controversial ports deal involving six American ports.

Now, the company involved, a state-run Dubai-based company called Dubai Ports World, said overnight that it would be delaying its plans to take over the operations of those six U.S. ports, that coming amid some concerns by members of Congress that perhaps the deal could jeopardize national security.

Well, today, Bush administration officials said they welcomed the delay, they welcomed the additional time, in order to give members of Congress briefings on this issue. Officials here at the White House believe that, the more people learn, the more lawmakers understand about this deal, the more comfortable they will be with it.

Elaine Quijano, CNN, the White House.

(END VIDEOTAPE)

WHITFIELD: And a new development today in the Dubai ports controversy.

The Port Authority of New York and New Jersey has filed to block -- filed a suit, rather, to block the deal. It says, the current port management company, P&O, violated its lease by failing to notify The Port authority about its sale to Dubai Ports World. The suit says, that failure deprived the Port Authority of its right to review the deal.

One of America's most powerful unions has come out against the Dubai deal. The Teamsters held a series of "Goodbye, Dubai" rallies across the country today. The protests took place in the six cities affected by the deal, plus more than a dozen other communities. The rally in Baltimore attracted about two dozen people. The Teamsters don't represent any Baltimore port workers. But an official says the union still opposes the takeover.

The Middle Eastern firm that plans to take over management of the six U.S. ports is now offering to delay that takeover, so that Congress will have more time to study the deal. The debate over control of American ports calls for a closer look at the way they are structured.

Here are the facts.

(BEGIN VIDEOTAPE)

WHITFIELD (voice-over): There are more than 360 commercial ports in the United States. The nation's marine transportation system sees more than two billion tons of domestic and international freight each year.

By weight, American's seaports handle more than 99 percent of the nation's overseas trade. They contribute $729 billion to the nation's GDP. The largest U.S. ports are in the South, Houston, and the Port of South Louisiana. They are among the top six ports in the world. U.S. ports are visited by about 7,500 ships from other nations each year, carrying the majority of the 890 million tons of goods entering the country.

U.S. ports are typically owned and managed by public port agencies that lease space to private businesses for import and export operations. Many of these private companies are based in other countries. The U.S. Coast Guard has overall responsibility for security at the nation's ports. The Coast Guard and the Federal Bureau of Customs and Border Protection inspect and regulate vessels and their cargo. State port authority police usually perform routine security duties.

(END VIDEOTAPE)

WHITFIELD: One step back from the brink of civil war -- that's what happened in Iraq today, thanks to a curfew and beefed-up Iraqi security forces in the streets.

But the key question, will Shiite-Sunni bloodshed resume once the curfew is lifted? Militia in the Baghdad slum of Sadr City ignored the curfew today, despite pleas of unity from both Shiite and Sunni political and religious leaders. Outrage remains, triggered by Wednesday's bombing of a major Shiite mosque.

Shiite reprisal attacks killed scores of people and damaged or destroyed more than 100 Sunni shrines.

Stop the violence -- that's the message from many of Iraq's neighbors, reacting to this week's bloodshed between the Shiites and Sunnis. Their fear, of course, is that the sectarian violence might spread beyond Iraq's borders. Unlike Iraq, Sunnis make up a majority of most Arab states. Many, both publicly and privately, blame the U.S. for the violence.

But most of the response has been directed to Iraq's political and religious leaders, urging them to do whatever is necessary to restore peace.

An update now on the two ABC News journalists wounded in Iraq nearly a month ago. Photographer Doug Vogt has been released from a hospital in Maryland. ABC says he and his wife are returning to their home in France. Anchorman Bob Woodruff was more seriously hurt when the vehicle he and Vogt were traveling in hit a roadside bomb.

Woodruff suffered head wounds and other injuries. ABC says, he is being slowly brought out of sedation. And doctors are pleased with his progress. We wish him the best.

The first medical treatment Woodruff and Vogt received was at a military trauma unit in Iraq.

CNN's Terrence Burke visited that very center. A warning: Some of the images you are about to see are graphic.

(BEGIN VIDEOTAPE)

TERRENCE BURKE, CNN CORRESPONDENT (voice-over): The first emergency of the day for major David Bowers and his Air Force colleagues.

UNIDENTIFIED MALE: What's his last pressure?

BURKE: This U.S. soldier was badly burned in a tent fire.

MAJOR DAVID BOWERS, U.S. AIR FORCE SURGEON: And it looks like he has a 75 percent total body surface area burns. He also has a significant inhalation injury.

BURKE: The flames reached his lungs, cutting his chance of survival in half.

BOWERS: The burn tissue has to swell. And, as it swells, it would compress the blood flow to his muscles and kill the nerves and things. So, we have to allow for swelling by opening up the -- the skin.

UNIDENTIFIED MALE: He has held his own pressure wise. He's kind of early on in the injury. So, you don't expect a whole lot of badness. But he's kind of heading into that, still.

BURKE: Doctors at the Balad trauma unit treat just a fraction of this war's casualties, American, Iraqi, Turkish, and British this day. BOWERS: Things just get done as quickly as possible.

One more time. Ah.

UNIDENTIFIED MALE: Ah.

BURKE: There are routine checkups to do, rounds in the Iraqi ward. Sometimes, even insurgents get care.

There's time for a quick bite and a laugh.

(LAUGHTER)

BURKE: But severely injured patients, like the morning's burn victim, pull the doctors back to their work.

UNIDENTIFIED MALE: Do we send all three of those, an urgent and two priorities, to one CCAT team, or do we need another?

UNIDENTIFIED MALE: I think they're going to...

BURKE: And you never know when another urgent case will arrive -- this time, a British contractor, flown to Balad after a roadside bomb hit his vehicle. Shrapnel tore up his legs and abdomen.

UNIDENTIFIED MALE: There you go.

UNIDENTIFIED MALE: One last one, all right, bud?

BURKE: He's quickly rushed off to operating room one.

BOWERS: You know, it's tough to see some of these young kids who get just really disfigured. You know, we know a lot of these people will -- will get completely better. So, we don't worry. You know, it's -- have no problem dealing with that. Just get things done, right?

Excuse me.

Looks like he has been going into shocks since he arrived here. Just got to get things controlled.

BURKE: You would think work like this drains. But Major Bowers keeps an even keel and enjoys what he does.

BOWERS: I don't think there's a lot of, like, really, really bad days, and really, really good days. I mean, you know, what would be a really, really good day here would be like going out and playing basketball, right?

BURKE: This is not one of those days.

BOWERS: His chest...

BURKE: Major Bowers and his colleagues have done all they can. But the Balad hospital has its limits. BOWERS: We are getting ready to transfer them to Germany.

BURKE: Into a new set of hands and a new set of people trying to save a life.

UNIDENTIFIED FEMALE: Got it.

UNIDENTIFIED FEMALE: Got it.

BURKE: Terrence Burke, CNN, Balad, Iraq.

(END VIDEOTAPE)

WHITFIELD: An arctic blast is on tap for parts of the U.S. Jacqui Jeras joins us with the forecast.

And potatoes and you -- a troubling study straight ahead. The news keeps coming. We will bring it to you -- more of LIVE FROM after this.

(COMMERCIAL BREAK)

WHITFIELD: South Dakota's House of Representatives has just given final legislative approval to a bill that would ban virtually all abortions in that state. The bill now goes to the governor, who says he's inclined to sign it.

It would ban abortions, except when the mother's life is in danger, making no exceptions for rape or incest. If the bill becomes law, it's sure to be challenged. And supporters can't wait. They hope the Supreme Court will use the case to overturn the 1973 Roe vs. Wade decision that legalized abortion.

A Georgia woman pleads not guilty to molesting her husband. Try to keep up. It gets rather complicated. Lisa Clark right there, 37 years old, her husband and father of her child is 15. They married last year, before her arrest for statutory rape and sex crimes against a minor. The 15-year-old's grandmother tells the Associated Press that he, the 15-year-old, will file for divorce.

Today, Clark was arraigned in Hall County Georgia. She's actually in jail for a separate charge that she helped her husband, the 15-year-old, bust out of a juvenile facility last month. She has since given birth to their child, a son.

An arctic blast is on the way. Let's check in with meteorologist Jacqui Jeras in the Weather Center.

Hello, Jacqui.

(WEATHER REPORT)

WHITFIELD: All right. Thanks so much.

Well, is the humble spud bad for the blood? Could be. A long- term Harvard study on certain forms of diabetes concludes, women who eat lots of potatoes run a slightly elevated risk for type-2 diabetes.

There's a list of variables, of course, such as lifestyle and preexisting conditions. The study is in the current "American Journal of Clinical Nutrition."

More bad news for controversial author James Frey. He has been dropped by his publisher, Riverhead Books. You will recall the flap that started when The Smoking Gun Web site revealed a lot of fiction in Frey's best-selling memoir, "A Million Little Pieces." He owned up to it on Oprah Winfrey's show last month, when she grilled him.

And that was an about-face for her as well. Her endorsement of the book during Frey's first appearance on the show shot it to the top of the best-seller list.

But the scandal hasn't been all bad for him. "Pieces" remains a paperback best-seller. And Frey's second book, "My Friend Leonard," is a hard-cover best-seller.

Live pictures on Bourbon Street -- we will talk Mardi Gras right after this. There's a sneak peek right there. Believe it or not, there are lots of people in town to celebrate Mardi Gras.

The news keeps coming. And we will bring it to you right here on LIVE FROM.

(COMMERCIAL BREAK)

WHITFIELD: In New Orleans, Mardi Gras is usually pretty big business. This year, the celebrations are scaled down quite a bit. But the partying still continues. The parades are heading into full swing this weekend, culminating with Mardi Gras or Fat Tuesday.

You are looking at a live picture. This is Bourbon Street. Three major parades are scheduled to roll through the city today. And, on Tuesday, 11 parades are scheduled in the city and nearby.

They are always outlandish, but this year's Mardi Gras celebrations in New Orleans strike many there as outrageous. Others think it would have been outrageous to cancel them.

CNN's Chris Lawrence reports, the city may be ready to party, but is it really ready?

(BEGIN VIDEOTAPE)

CHRIS LAWRENCE, CNN CORRESPONDENT (voice-over): There are still good times on Bourbon Street, but walk one block over. Stores are empty.

UNIDENTIFIED FEMALE: It's real bad. Every business is suffering.

LAWRENCE: Maria Nelson (ph) says sales have dropped 70 percent. Her gallery depends on older tourists who appreciate artwork.

UNIDENTIFIED FEMALE: And we're not getting that at all. We're getting the younger generation.

LAWRENCE: Visitors could be confused by the different signals the city is sending: open and closed, hopeful, still hurting.

HAROLD PINKLEY, NEW ORLEANS VISITOR: Downtown, where I was, you know, it's -- superficially, it looks OK, but you can tell there's just not a lot of people down there.

STEPHEN PERRY, PRESIDENT AND CEO, NEW ORLEANS CONVENTION AND VISITORS BUREAU: Well, New Orleans right now is a tale of two cities.

LAWRENCE: Steve Perry runs the Convention and Visitors Bureau. He says, the tourist industry is New Orleans' largest employer and generates one-third of the city's operating budget. Perry says, New Orleans has reopened 28,000 hotel rooms.

PERRY: We're almost sold out for Mardi Gras, which is great. We have got over 1,000 restaurants open, and almost 30,000 people back to work.

LAWRENCE: But take a closer look. That number of rooms is still 10,000 fewer than normal. It's sold out because some big hotels are still shut down, the Ritz-Carlton and Fairmont, just to name two. A lot of restaurants are still boarded up. And, for every person back to work, there are two jobs that haven't been filled.

UNIDENTIFIED FEMALE: After Katrina, everything changed. It won't be the same ever again.

(END VIDEOTAPE)

WHITFIELD: And that was Chris Lawrence reporting. Is New Orleans really ready for that party? CNN is there, as the Crescent City celebrates its first Mardi Gras since Katrina.

"AMERICAN MORNING" and "ANDERSON COOPER 360" will be live from New Orleans, beginning Monday at 6:00 a.m. Eastern. And you can also watch the festivities on CNN Pipeline. They will have a live Web cam on Bourbon Street, and you can sneak a peek for free on Fat Tuesday, a Mardi Gras to remember, only on CNN.

WHITFIELD: The resemblance is startling. But this mother and daughter don't recognize each other just quite yet.

Baby Acara was born by emergency C-section last may at a zoo in Salt Lake City. But Eve, her mother, failed to recognize her afterwards. Since then, animal caretakers have tried to mimic a good orangutan upbringing, and are slowly reintroducing the pair -- and, so far, quite cuddly, so good.

A former "Golden Girl" gets a bronze garnish at the Los Angeles Zoo. Actress Betty White is now an animal ambassador. She was honored for her commitment to animals. A bronze plaque will be placed next to the zoo's gorilla exhibit, home to White's favorite animal.

(BEGIN VIDEO CLIP) BETTY WHITE, ACTRESS: We have all seen our attitude about animals change. We are now paying more attention to how important they are to us. And we are now really trying to conserve and preserve some of the -- some of the wonderful creatures on the planet, as well as the friends that we live with day to day.

(END VIDEO CLIP)

WHITFIELD: A one-in-a-billion chance turns a teenager into a minor celebrity and everybody's new best friend in West Bloomfield, Michigan.

Sixteen-year-old Alex Ostrovsky logged on to Apple Computer's iTunes the other night to download the Coldplay hit "Speed of Sound." A few minutes later, he learned he had just bought iTunes' one- billionth download.

Well, what does it mean? Alex is getting an amazing major return on that 99-cent investment, a 20-inch iMac computer, 10 iPods, and $10,000 worth of iTunes to load all -- to load and download. Apple is also setting up a scholarship at Juilliard in Alex's name.

Well, he's a winner on and off the ice. Now he has received another honor from his teammates -- Joey Cheek's winning ways -- coming up on LIVE FROM.

But, first, our weekly feature, "Life After Work" -- this week, we profile a form teacher now using her skills on the slopes in Killington, Vermont.

(BEGIN VIDEOTAPE)

JENNIFER WESTHOVEN, CNN CORRESPONDENT (voice-over): In the early '90s, teenage snowboarders started shredding the slopes at Killington Resort in Vermont, and Chickie Rosenberg decided it was time to try it out.

CHICKIE ROSENBERG, SNOWBOARD INSTRUCTOR: I switched, because I felt it was safer for me in terms of injury. And, once I got on the snowboard, it was just much more fun.

Whew!

WESTHOVEN: Chickie left her job as an English teacher when her daughter was born and bought her first snowboard for her 50th birthday. She started training, and 16 years later, is one of Killington's top instructors.

ROSENBERG: Stay on your toes and pick up a little speed.

Once I got involved, snowboarding, that's all I really wanted to do.

(LAUGHTER)

ROSENBERG: So, I stopped doing everything and just taught snowboarding.

WESTHOVEN: Now 65, Chickie says, the age difference doesn't matter in the teen snowboarding culture.

ROSENBERG: I was always a counter-culture person myself.

(LAUGHTER)

ROSENBERG: And I have always related well to teenage kids. The snowboard instructors, they're all the kids, and they're all my buddies.

(LAUGHTER)

UNIDENTIFIED MALE: What a sweetheart.

(LAUGHTER)

WESTHOVEN: You might not expect a grandmother of two out on the slopes teaching fearlessness and the thrills of snowboarding.

ROSENBERG: Come across the hill.

And I had these two girls, and they had a bad morning, and they were terrified. And they had the best afternoon. And that's a wonderful thing, and that's a gift. It's a wonderful thing to be able to teach and to be able to make a happy day for somebody.

UNIDENTIFIED FEMALE: Thank you!

(LAUGHTER)

ROSENBERG: The most important thing I teach people is to have confidence in themselves. That's really what I give them.

WESTHOVEN: Jennifer Westhoven, CNN.

(END VIDEOTAPE)

(COMMERCIAL BREAK)

WHITFIELD: Let's check in with Tony Harris, who is in the news room with a developing story -- Tony.

HARRIS: Hey, Fred.

Let's take you to Los Angeles now. The Port of Los Angeles where another rally is going on right now sponsored by the teamsters, in opposition of the ports deal. As you mentioned just a short time ago, there have been rallies in six cities affected by the deal today. In all a total of 20 rallies are scheduled.

Now, a little earlier, the teamsters rallied in Baltimore, even though the teamsters don't represent Baltimore port workers. Here's that scene from earlier today. Fred, the day of rallies comes with a title that's called "Good-bye Dubai, Secure America's Ports." Here's a bit of the statement in part from the teamsters. It reads, "the union strongly opposes the sale of P&O Ports' U.S. terminal operations to Dubai Ports World. The nearly $7 billion deal approved by the Bush administration puts our nation's gateways under control of a company based in a country that has served as a conduit for terrorist activities."

Now, of course, those in favor of the deal tell us that these terminal operators have to work with U.S. security officials, all the agencies involved in Homeland Security, the Port Police, the Coast Guard and the Department of Homeland Security.

Again, Fred, live pictures now of a teamsters rally against the ports deal underway right now at the Port of Los Angeles. We'll watch it. Fred, back to you.

WHITFIELD: Thanks. Demonstrations sweeping the country. Thanks so much, Tony.

Arson or something even more sinister? The string of Alabama church fires has investigators looking at the possibility of hate crimes. White supremacist groups are still active across the U.S. and our Alina Cho takes a rare glimpse inside one of the most secretive, the Ku Klux Klan.

(BEGIN VIDEOTAPE)

KLAN MEMBERS (in unison): I pledge allegiance to the flag of the United States of America ..

ALINA CHO, CNN CORRESPONDENT (voice-over): July 24th, 2005. This is the new face of the Ku Klux Klan.

KLAN MEMBERS (in unison): ... with liberty and justice for all white men.

CHO: This videotape is a rare look at the inner workings of the KKK. Its members are younger. The movement is growing.

UNIDENTIFIED MALE: White power.

KLAN MEMBERS (in unison): White power.

CHO: Just ask Jared Hensely (ph). At 23, he is the second-most powerful Klansmen in the state of Ohio, a grand titan of the Imperial Klans of America, the largest faction of the KKK. Hensely dreams about an all-white America.

JARED HENSELY, KLAN MEMBER: All-white neighborhoods, all-white cities, you know, good values.

CHO: He joined the Klan as soon as he turned 18. Like most new members, he was intrigued by what he saw on the Internet.

HENSELY: This is our Web site. CHO: White supremacist Web sites which serve as recruiting brochures. The Internet allowed Hensely to connect with other white supremacists at events like Nordic Fest, an annual festival held in Kentucky dedicated to racist music and ideology.

UNIDENTIFIED MALE: We stand for a better world. We stand for the white race in all things at all times.

MARK POTOK, SOUTHERN POVERTY LAW CENTER: There's a whole sub- culture that comes with this world.

CHO: Mark Potok with the Southern Poverty Law Center says the number of hate groups in America has grown from 600 to 800, a 33 percent jump in the past five years.

POTOK: The fact is these groups continue to grow. We see more and more neo-Nazi-type incidents in high school and even middle schools.

UNIDENTIFIED MALE: White power.

POTOK: For me, it's a worrying phenomenon. I don't think that the country is doing well in terms of race relations. And, in fact, I think a strong argument could be made that we are really going backward in many ways.

CHO: At this Klan meeting, members take part in secret handshakes, prayer ...

KLAN MEMBERS (in unison): God save our race.

CHO: ... even fundraising ...

HENSELY: I think it's important now to forget about the earning baby (ph) drive.

CHO: ... all for the white race. And the Klan of today is changing. The new Klan is starting to join forces with neo-Nazi skinheads. Now above all, even blacks, they hate Jews.

UNIDENTIFIED MALE: Hitler inside of the swastika right there.

CHO: They also worship Adolph Hitler.

(on camera): What about the Holocaust?

HENSELY: The Holocaust is completely false. I don't believe that six million people died at all.

CHO (voice-over): Hensely believes Jews and other minorities are taking jobs from whites.

CHO (on camera): Are you saying that you think I should leave?

HENSELY: I think you should go and, you know, build in your country. In a country -- you could have been born here, but you are not originally from here, just like we wasn't, but we built this country.

CHO (voice-over): He wants to build an all-white America, his land of opportunity, his dream for his 3-year-old daughter.

HENSELY: See, in my eyes, this is what's beautiful is like a, you know, white -- just white kids, white values and a nice home, nice land around.

CHO: Alina Cho, CNN, Middletown, Ohio.

(END VIDEOTAPE)

WHITFIELD: Two days after that massive heist in England, an oddly-similar caper in Northern Ireland. Authorities say a gang stole 200,000 pounds -- about $350,000 -- worth by taking a bank worker's family hostage. It's the same tactic used by reported organized criminals to seize some $80 million Wednesday in the English city of Maidstone.

In today's heist, robbers reportedly entered a home in Belfast, took a woman and child hostage, and told the man to report to work, fill a bag full of money and dump it in an alley. The man did as told, and the money vanished.

Your Olympic update straight ahead. We have got the news you want all after news -- afternoon, that is. More of LIVE FROM after this.

(COMMERCIAL BREAK)

WHITFIELD: Party time in the Big Easy. You are looking at one of the many parades that is going through Bourbon Street area down in New Orleans as they celebrate the start of Mardi Gras.

Cleared but still under suspicion. Almost a week after their rooms were searched for banned substances at the Winter Olympics, tests on 10 Austrian athletes have come back negative. But a cloud hangs over the biathlon and cross-country skiing teams.

The Austrian Ski Federation sports director is being questioned right now about why a coach barred from the games was with some of those athletes.

For the U.S. today, more winnings. Julia Mancuso took everyone -- even herself -- by surprise, skiing to gold in the giant slalom. It was her first win in a major race, and the first Olympic Alpine medal for the U.S. women since 1998.

And for speed skater Chad Hedrick a medal of every color now. The world record holder in the 10,000 meters placed second in that event today behind the flying Dutchmen, Bob de Jong. Earlier Hedrick won gold in the 5,000 meters and bronze in the 1500. His parting words, see you in Vancouver.

Leading them in, the U.S. team has chosen another speed skater to carry the American flag during Sunday night's closing ceremonies. Joey Cheek, winner of gold and silver, says he doesn't feel worthy of the honor. But perhaps it's also to recognize his winning ways off the oval.

CNN's Mark McKay has that from Torino.

(BEGIN VIDEOTAPE)

MARK MCKAY, CNN CORRESPONDENT (voice-over): Joey Cheek had a premonition before competing here in Torino that he'd be part of something big. Little did four-time speed skating gold medallist Johann Olav Koss know that his humanitarian cause would be the beneficiary.

Cheek indeed skated big at these games winning gold and silver. But his biggest moment came when he donated his $40,000 in bonus money to Koss' right to play organization.

JOEY CHEEK, GOLD & SILVER MEDALLIST: You can call it fate or call it, you know, faith or destiny or whatever, but there has been something that allowed me to skate like I did. I've never skated that well in my entire life.

And I think part of it has to do with the fact that I knew that I owed something to someone else. You know, I owe something to other people. So I looked at it almost as a debt served.

JOHANN OLAV KOSS, 4-TIME OLYMPIC GOLD MEDALLIST: Everybody should be inspired by what Joey's been doing. And I am both humbled and inspired and thankful. Because it's incredible. We've never seen such an attention given to our work.

And taking his platform that he's been given at these Olympics and helping the children suffering the most in the world today. And I cannot emphasize that enough. This has never been done before.

MCKAY: When he skated, he was known as Koss the boss. The Norwegian is still the boss. The president and CEO of an organization that he created six years ago to improve the lives of children in disadvantaged areas of the world.

Cheek and Koss are Olympic champions from different eras and countries. But they are now on the same team and share the same passion to help children.

CHEEK: The standard that he sets for athletes and the standard that people like him set, that's the idea I want to live up to. And I hope to attain.

OLAV KOSS: Mine comes from seeing children in the world suffering from war, from poverty and disease, from conflict. Wanting to make their life better, so they are not recruited to suicide bombers or terrorists.

CHEEK: I can use this to really promote something that will benefit more than just me, so I feel like it's a no-brainer. I'm a little surprised it's so easy. I don't know why more athletes don't do it. And it generates good things for other people and it makes you feel good about yourself.

MCKAY (on-camera): With Cheek already putting his money where his mouth is, he'll next travel to Zambia in his new role as a right to play athlete ambassador.

Mark McKay, CNN, Torino.

(END VIDEOTAPE)

WHITFIELD: That is inspiring.

Zip up, stick with what you know, and hold your tongue. Just some of the rules Olympic athletes have to follow.

In ski jumping, for instance, a competitor has to zip his suit all the way up or risk being disqualified for creating extra buoyancy. And the tight suits can't have more than four centimeters leeway in a certain area. No word on who checks that.

In freestyle skiing, if you haven't tried a particular move in training, don't try it in competition. You'll be out. And the wrong word could send you packing. An American bi-athlete risked being disqualified after some people thought they heard him say a few choice words when he missed all five targets.

Some timely tax advice.

Our Valerie Morris answers some of your questions.

The news keeps coming and we'll bring it to you. More of LIVE FROM next.

(COMMERCIAL BREAK)

WHITFIELD: A former defense contractor has pleaded guilty to paying bribes worth more than a $1 million to a member of Congress. Mitchell Wade admits that he gave Congressman Randy Duke Cunningham antiques, cash and other gifts in return for millions in government contracts. The gifts also included a 42-foot yacht.

Cunningham, a California Republican, resigned from Congress last year. He has also pleaded guilty. His sentencing is scheduled for a week from today.

Well, you've no doubt heard you have to spend money to make money. But when it comes to tax preparation, many people wonder whether the price is right. We've been taking your e-mails.

And now Valerie Morris has some answers for you.

Hello, Valerie.

VALERIE MORRIS, CNN CORRESPONDENT: Hi, Fredricka.

WHITFIELD: Let's get you the first question. MORRIS: You know, Ron wrote, "What is a normal fee for tax preparation? I file the long form with deductions like mortgage interest, interest earned, no capital gains."

Well the answer, Ron is that fees really do vary dramatically. A simple return can run you anywhere from $100 to $150. But that does not give you any future financial planning advice. A more complicated return could run from $180 to about $400 an hour -- Fredricka.

WHITFIELD: All right. And we had another question from someone who asked about H&R Block because that's a popular place where people take their taxes to get prepared. They want to know in particular...

MORRIS: Well they want to know if "I had to pay $205 for a simple tax preparation at H&R Block, is that the normal amount?" Well, we checked with H&R Block, and they say that the average fee for walk-ins is $155. Now that's for an average return for a family with two children.

We also checked with a certified public accountant here in New York Russell Blank. And he says it's very important to ask what kind of good advice did the person get from H&R Blocks' seasoned professionals.

Blank's point is for your health, you don't go to a part-time doctor. So he says for your financial wealth you shouldn't get advice from what he describes as part-time tax preparers.

WHITFIELD: Oh, good advice.

All right. How about for families? Maybe they are looking for a place where they get some free help. Is that available?

MORRIS: Well, absolutely. And in fact we've been getting great emails, including one from the viewer in Victorville, California. Her name is Mary.

She was telling me that she has been a volunteer at the IRS volunteer income tax assistance program called VITA. And VITA offers free tax help to low to moderate income people that means $38,000 a year or less, who can't prepare their own returns.

Now if you want to locate a VITA site near you, you can call 1- 800-829-1040.

And by the way, Fredricka, your tax dollars already fund this, so people who qualify for it should definitely use it.

WHITFIELD: Take advantage of that.

All right, E-file. That's very popular these days. But Jim from Colorado doesn't like the idea that you actually have to pay for it.

MORRIS: Right. He says, "Why is there a fee for filing taxes electronically? It's bad enough to pay almost $10,000 in taxes, he says. Then you get stuck with another $30 fee." Not only did he write in but also Steve from Massachusetts wonders if there's away around the fee. He says, "Is there software available that offers free e-filing? Why do I need to pay to e-file anyway? Shouldn't this be a free service of the IRS?"

All right. The answer is e-filing is very popular. The IRS says that more than half of tax payers filed electronically last year. E- filing is faster. It's easier. It's more accurate. There is always a charge to e-file unless you make less than $50,000 a year. Then you can use the IRS free file system.

As for fees, the fees vary very widely depending on which company's software you choose. The fee, by the way, is not controlled by the IRS. The fee is set by private companies that provide tax software preparations.

A spokesperson Anthony Burke with whom we have been working on this series at the IRS recommends e-filing absolutely but it is your choice. So if you don't want to pay the fees, just send your return by mail.

And if you want further information go to IRS.gov for more details --Fredricka.

WHITFIELD: All right. And Valerie, it seems like there's always someone out there trying to take advantage of folks. There are lots of tax scams all the time. What should taxpayers be looking for to watch out?

MORRIS: You know, if it sounds too good to be true, it probably is. Every year though the IRS comes out with this list of the dirty dozen tax scams. And you can see them all by going to that web site that I referred you to IRS.gov.

The most popular scams, they usually promise to reduce or all together eliminate your tax bill. Don't believe it. Rich Morganti (ph) from the IRS offers this advice. He says if it sounds too good to be true, it normally is.

But also some new schemes are out this year, and one is e-mail saying that it is from the IRS claiming that your return is being audited and asking you for personal information. The IRS never, ever initiates audits via e-mail. So do not be fooled.

WHITFIELD: Good warning. Gosh, always something out there to look out for.

All right, Valerie Morris. Thanks so much. Have a great weekend.

MORRIS: All right. You as well.

WHITFIELD: Thank you.

Well, let's check in with Wolf Blitzer. "THE SITUATION ROOM" is coming next. What's on tap, Wolf?

WOLF BLITZER, CNN ANCHOR: Thanks Fred.

Coming up, we are following a developing story right now in South Dakota. The state is poised to ban nearly all abortions in the state, and it could prompt a huge legal fight across -- about abortion across the country.

Also ahead, New Orleans gets ready to party. But is Mardi Gras a waste of precious resources for the struggling city? We'll go live there.

And the UAE port deal is now on hold. Is that enough to lower the heat on the White House? All that, lots more, Fred, coming up in "THE SITUATION ROOM."

WHITFIELD: All right. Thanks so much, Wolf. We'll be watching.

Big bucks. Strong words. But will it pay off down under? Australia used to promise tourists another shrimp on the barby. But that shrimp has gotten pretty gamy. So the tourism industry sank more than $130 million into a new ad that actually swears at would-be visitors. Saying quote, "Where the bloody hell are you," it ask.

Don't believe me? Well, check it out for yourself at www.wherethebloodyhellareyou.com.

Find out where Ali Velshi is as well when LIVE FROM returns.

(COMMERCIAL BREAK)

WHITFIELD: Well, Mardi Gras is under way in New Orleans. And take a look at Bourbon Street just a taste of what's to come. Because starting Monday, CNN's "AMERICAN MORNING" and "ANDERSON COOPER 360" will take you there live to New Orleans as CNN witnesses Mardi Gras.

And it is Friday. And the closing bell is about to ring.

Our Ali Velshi is watching the markets.

And, Ali, how are things looking?

(STOCK MARKET REPORT)

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