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CNN Live Today
No Concrete Signs of Terrorism in Russian Airline Crashes; al- Sistani Returns to Iraq; Abu Ghraib Scandal and Gitmo Updates
Aired August 25, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN Headquarters in Atlanta. I'm Daryn Kagan. Well, let's check out what is happening now in the news.
Officials in Russia say they have found all of the flight data recorders, but no survivors in the wreckage of two airliners that crashed under mysterious circumstances. Eighty-nine people are presumed dead. The planes disappeared from radar three minutes and 450 miles apart.
Witnesses reported explosions before the crashes. And there's one report that one plane had sent a distress signal that a hijacking was underway. Another possible cause includes pilot error or fuel problems.
There's a new development to report in the embattled Iraqi city of Najaf. Iraq's most powerful Shiite cleric, Grand Ayatollah al- Sistani, arrived in Iraq to take part in peace negotiations between rebel fighters and U.S.-backed Iraqi troops. Instead, he called on Iraqi to march on Najaf and, as he says, rescue it. A Najaf police chief says that would create new dangers.
Democratic presidential nominees John Kerry and John Edwards are stumping in the Rust Belt today. Kerry is in Philadelphia meeting with members of the Steamfitters Union. Edwards wraps up a two-day swing through Ohio and is taking part in town meeting type of event in Cleveland.
Homeland Security Chief Tom Ridge formally rang in today's session at the New York Stock Exchange. At the bottom of the hour, he'll join New York officials in a public viewing of some of the city's new security equipment. New York, of course, is host to next week's Republican convention. For that, stay on CNN. This is the most trusted name in news.
We are going to begin our hour in Russia. Investigators there are looking at a possible range of causes, including terrorism for near simultaneous crashes of two jetliners. The two planes simply dropped from radar within three minutes and about 450 miles apart. All 89 people aboard the two planes were killed.
Both planes left from Moscow last night. The first was bound for Volgograd. Witnesses say they saw it explode before it crashed. The second plane was headed for the resort town of Sochi. Russian news reports say that the plane transmitted a signal indicating that a hijacking was underway. Our Ryan Chilcote is in Moscow. He has the latest on the investigation. Ryan, hello.
RYAN CHILCOTE, CNN CORRESPONDENT: Hello, Daryn. Well, what we know at this point is from the Russian Federal Security Service. That is the Russian successor to the KGB and they have a lead on this very large investigation.
Now, the Russian president a couple hours after these two planes very coincidentally crashed, asked the Federal Security Service to take on this investigation. And what they have said is that they are looking, as you said, at all of the possible scenarios, all the possible causes, including terrorism.
But a deputy spokesman for the Federal Security Service, just a short while ago, said that so far they haven't found any concrete signs of terrorism in either of the crashes. And they're looking at some other things: checking out the possibility that these planes could have gotten some bad fuel or were improperly somehow fueled; or maybe there was mechanical failure; weather was involved. They're going through a bunch of scenarios now.
That's what we have on the record. The Russian Federal Security Service really not saying a whole lot, quite frankly. The investigation has been going on for a long time and we've been told very little. But interestingly, off the record, some sources have been telling Russian media agencies that, as you said, one of the planes had a distress signal, perhaps a hijacking signal, emitted from it just before it went off the radar. And another report that there may have been an attack on the crew of the second plane.
So, those are things we can't confirm, but definitely need to figure into our understanding of what might have happened to those planes.
KAGAN: Ryan, if you even go to the place of thinking about terrorism, you're going to think about Chechnya. There are elections coming up in that region. Any word from Chechen rebels on these two crashes?
CHILCOTE: Sure. Well, a representative from a more moderate wing, if you will, of the separatist movement in Chechnya who lives in the United Kingdom, has come out and said that the Chechen rebels didn't have anything to do with this. But the Chechens don't always claim responsibility for terrorist acts.
And it might not be in their interest to claim responsibility for this terrorist act. And they don't always act in unison. So, that doesn't necessarily mean a whole lot what this representative is saying.
Of course, the suspicion would fall on the Chechens, because there is a lot of Chechen terrorism inside of Russia, particularly before big political events in Chechnya, like we're expecting this weekend, an election there. KAGAN: Meanwhile, from President Putin, he was in one of the resort towns where the plane was headed. Back in the capital now, any word from him on the two crashes?
CHILCOTE: No. We've yet to hear from the Russian president. And that will be a big moment in the development of this story. He was in the Russian resort town of Sochi; incidentally, that was the place where he was when the Kursk went down. And he was criticized very much for not going public on that submarine when it went down and about the casualties, and the seriousness of the situation.
So, the Russian president perhaps learning his lesson then. He's come back to the Kremlin. And I think it is fair to say that we'll probably hear something from the Russian president later today.
KAGAN: Ryan Chilcote in Moscow. Thank you for that.
Interesting development from Iraq where the leading Shiite cleric there is calling for a march on Najaf to rescue the city. But with fighting continuing, Najaf's police chief is discouraging that kind of a move.
For more, let's go to Matthew Chance. He's on the videophone from Najaf.
Matthew, hello.
MATTHEW CHANCE, CNN CORRESPONDENT: Daryn, thanks and hello to you as well. A potentially dramatic development here in Najaf with the return of the Grand Ayatollah Ali al-Sistani from his sick bed in Britain, where he has been receiving heart treatment, of course, in the past three weeks since he's been away in Najaf, the holy city of the Shiia Muslims.
Fighting has been raging between U.S. forces and those of the Mehdi army militia. He's been making his concerns felt from his sick bed in London. But now that he's back in the country, he seems to be adopting a more forceful position to try and bring to a peaceful end this standoff in Najaf. Calling on Iraqis to converge on Najaf, in order, in his words, "to prevent a disaster befalling the holy city." That according to his aides that we've spoken to.
The implication being that if thousands of Iraqis come to Najaf, and then both sides would stop fighting and the crisis would be over. How it actually plays out on the ground though, may be altogether quite different.
We understand in the last few minutes there have been a press conference. A news conference announced by the Iraqi police, saying that they've arrested two senior aides to the radical Shiias cleric Muqtada al-Sadr.
We also understand that sporadic fighting continues on the streets of Najaf with fighters of the Mehdi Army. They are continuing to control the narrow streets around the Imam Ali Shrine, one of the most sacred shrine, or the most sacred shrine in Shiia Islam. What people are saying here is if the Grand Ayatollah were to issue a degree for those Mehdi fighters to stop fighting, to withdraw from their positions, then they would do that. Because he does have such authority, even with followers of Muqtada al-Sadr.
But the Ayatollah may be reluctant to do that, simply because over the past three weeks, the sort of status of Muqtada al-Sadr has been bolstered amongst the people. He will be very mindful of that when he makes any public pronouncement. But even so, both sides must now take accounts of the presence of this extremely revered figure in this country -- Daryn.
KAGAN: Matthew Chance in Najaf. Thank you.
This afternoon, the U.S. Army's report on the Abu Ghraib prison abuses will be released. The Fay Report comes one day after another investigation described events at the prison as, "sadism on the night shift."
Our Barbara Starr has that story.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The Army's so-called Fay investigation into questionable intelligence practices at Abu Ghraib prison is now expected to name some two-dozen personnel who could face further disciplinary or legal action.
This follows an advisory panel report yesterday from former Defense Secretary James Schlesinger, a devastating indictment of what he calls, "The chaos" that raged at the prison.
JAMES SCHLESINGER, CHMN., ABU GHRAIB PRISON PANEL: There was sadism on the night shift at Abu Ghraib, sadism that was not authorized. It was kind of "Animal House" on the night shift.
STARR: The pictures that stunned the world were not part of any effort to interrogate prisoners. At the end of the day, undisciplined soldiers with commanders not paying attention.
TILLIE FOWLER, MEMBER, ABU GHRAIB PRISON PANEL: The Pentagon failed to properly adapt to the situation on the ground, and to provide sufficient number of adequately organized and trained personnel needed to conduct detention operations in Iraq.
STARR: In Baghdad, as Lieutenant General Ricardo Sanchez struggled to fight the insurgency, the report notes that, "senior leaders should have moved to meet the need for additional military police forces." Sanchez and other top leaders criticized for not making clear who was running the prison, and for allowing confusing interrogation policies to emerge.
(on camera): But the panel said at the top it was mistakes, not legal culpability. And neither Defense Secretary Donald Rumsfeld nor General Richard Myers, chairman of the Joint Chiefs of Staff, should resign. Barbara Starr, CNN, the Pentagon.
(END VIDEOTAPE)
KAGAN: CNN is going to have live coverage of the release of the Fay Report. The news conference is scheduled to begin around 1:30 Eastern.
Pretrial hearings four of the seven soldiers accused of the abuse at Abu Ghraib wrapped up today at the U.S. base in Mannheim, Germany. Military prosecutors dismissed three charges against Specialist Megan Ambuhl, who still is accused of what her attorney called "failing to intervene or report abuse."
Staff Sergeant Ivan "Chip" Frederick will officially enter a guilty plea in October to some of the charges against him. An attorney for Frederick says abuses went on at Abu Ghraib before Frederick and his company arrived. Frederick's parents say he is not guilty of abuse or torture.
(BEGIN VIDEO CLIP)
JOANNE FREDERICK, SGT. FREDERICK'S MOTHER: I think that the people in Washington need to sit down and shut up or tell the truth.
(END VIDEO CLIP)
KAGAN: Frederick has asked his supporters not to blame the soldier who blew the whistle on the Abu Ghraib abuses.
Twenty-nine-year-old Australian accused of fighting against U.S. forces in Afghanistan appears before a military commission in Guantanamo Bay today.
Our Susan Candiotti joins us from the U.S. Navy base on Cuba.
Susan, good morning to you.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Good morning, Daryn. The commission hearing this day is already underway in that building that you can see way off in the distance over my shoulder. Of all the detainees accused of war crimes, so far the charges against Australian David Hicks are the most serious.
All the detainees are accused of conspiracy to commit acts of terror, but Hicks is also charged with the attempted murder of coalition forces and aiding the enemy.
Now, the government also alleges that Hicks trained at al Qaeda camps, that he met with Osama bin Laden and helped him translate literature from Arabic into English.
Hicks is the only so-called enemy combatant whose family has been able to come to Guantanamo to listen in on these hearings, thanks to a donation from a woman in Australia. His father and stepmother arrived yesterday accompanied by the Australian ambassador. They've also hired a private attorney.
Now, at the Australian government's request, the family was allowed to meet with their son for about 15 minutes before the commission began this day. We are told the meeting was not monitored. However, it is likely, we are told, that Hicks was restrained in some way.
His father told us that he cannot explain why his son got into so much trouble. And he denies that his son is a terrorist.
(BEGIN VIDEO CLIP)
TERRY HICKS, FATHER: David's been an inventor all his life, right from that high. He always wanted to see what was over the next fence. And I think, as he got older, the fence got taller. So, he ended up in those circumstances.
(END VIDEO CLIP)
CANDIOTTI: This is the second of four days of these scheduled hearings. Yesterday, a preliminary hearing for Osama bin Laden's former driver; he put off entering a plea probably until November.
Human rights organizations and representatives from the American Bar Association are also here. They have been critical of the process. However, the Pentagon contends that these military commissions are the right way to try these cases.
(BEGIN VIDEO CLIP)
LT. SUSAN MCGARVEY, TRIBUNAL SPOKESWOMAN: People saw how the prosecution was able to present their side of the story. The defense could present their side of the story. And the panel and the presiding officer would hear all the issues and address them fairly.
So, I think that as this plays out, people will see it as a full and fair trial.
(END VIDEO CLIP)
CANDIOTTI: No firm trial dates have been set yet. The earliest might be in December. And remember that even if all of these people are found not guilty, because the U.S. government calls them enemy combatants, theoretically they could hold on to them for security reasons indefinitely, or until someone says the war on terror is over.
Back to you, Daryn.
KAGAN: Susan Candiotti, Guantanamo Bay, Cuba. Susan, thank you.
The swift boat ad controversy lives on. Max Cleland is heading to Crawford, Texas to make a personal plea to the president. A live report is ahead.
And a rare water phenomenon, find out where this waterspout popped up in our check of weather. And then later...
(BEGIN VIDEO CLIP)
DUANE "DOG" CHAPMAN, BOUNTY HUNTER: Freeze! Augustine, don't move.
I am a lawman on a mission from God.
(END VIDEO CLIP)
KAGAN: OK. From bounty hunter to reality television show star. A man who makes his living by bringing the bad guys in. You get to go along for the ride. We're going to visit with Duane "Dog" Chapman later on CNN LIVE TODAY.
(COMMERCIAL BREAK)
KAGAN: Force of nature and a fearsome leap from sea to land. This is some home video of a waterspout turning off the coast of St. Petersburg, Florida. And it charged on to land, it cost some minor damage, no injuries reported. I imagine the folks in Florida are just about over having any kind of weather, be news from where they are.
Money for the Republican National Convention and the funds aren't just coming from Republicans. Democrats have also helped to bolster the bottom line. We will tell you why.
And speaking of money, you think money, you think Gerri Willis.
(LAUGHTER)
KAGAN: Here with a little advice how to keep debt at bay.
Gerri, good morning.
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Right. Yes, this is a flipside. This is having no money. If you are in your 30s, your 40s, we're going to tell you the debt time bombs to avoid, when CNN LIVE TODAY continues.
(COMMERCIAL BREAK)
KAGAN: Let's talk about a four-letter word. Debt, D-E-B-T, it is a four-letter word for a reason. If left unchecked it can sabotage your retirement plans, it can lead you to foreclosure and to bankruptcy. Yet some debt is unavoidable for most Americans.
In today's "Top Five Tips," Gerri Willis tell us advice on how to manage your debt today so it doesn't become an overwhelming problem later.
Gerri, good morning.
WILLIS: Hey, Daryn. Good to see you. Tip No. 1, watch out for mortgage debt overload. Look, it is very easy to overbuy on your house because all the forces at work are telling you to buy more, more, more, whether it is your real estate agent or your mortgage banker. They make more money if you spend more, so it is easy to get saddled with a huge mortgage.
Keep in mind here that people are starting to use their banker as a financial advisor.
(BEGIN VIDEO CLIP)
GREG MCBRIDE, BANKRATE.COM: Don't base this decision on how much the lender is willing to lend to you. They're in the business of making loans. It's up to you to make the payments every month. So, you have to decide, what is right for your budget and for your circumstances, even if that means taking on a smaller loan and buying a smaller house.
(END VIDEO CLIP)
WILLIS: So, you may want to think about having a mortgage that can be supported by just one income, in case one spouse wants to stop working. In any event, make sure that your mortgage debt is 28 percent or less of your monthly gross income.
And keep in mind, Daryn, that paying for the house doesn't just mean paying for the mortgage. It means upkeep, it means insurance, it means a whole lot of other things as well.
KAGAN: Oh, yes, it does. Lesson learned.
Let's talk about health insurance. Now, why are we talking about health insurance if we're talking about debt?
WILLIS: Well, the big problem with health problems is that they are often the thing that pushes people into bankruptcy. In fact, according to a recent survey, some 19 percent of people in bankruptcy, who had been middle-class, are there because they had health problems.
So, obviously, you want to make sure you're paying your health insurance premiums. Beyond that, you also want to buy disability insurance, because that's where you often can't afford the big bills. Disability insurance will cover you for illnesses that last six months or more. And that can be the critical missing link if you have a healthcare problem.
KAGAN: Most debt for people, a lot of people, is all about credit cards.
WILLIS: Yes. You know, the numbers are astounding. Americans have something like $800 billion in credit card debt. Really ugly. And here is another ugly statistic. The industry, credit card industry, makes 77 percent of all outstanding balance on credit cards are from late fees.
KAGAN: Wow!
WILLIS: So, you can save yourself a ton of dough by just paying your credit card on time. One easy way to do is automate your payment. So, that payment goes out whether you remember to do it or not. You avoid the late fees, which are now averaging, like $32 each time you forget.
KAGAN: That is incredible.
If you're trying to clean things up, your 401(k) is not a cookie jar.
WILLIS: Yes. A lot of people in the 30s and 40s are thinking about getting their kid into college. And how are they going to pay for it? So many are reaching for the 401(k). A loan on their retirement dollars is not a good way to go because you really can't make up that money, even if you put it back in later. It doesn't have the time to grow and appreciate.
So, instead of doing that, take out a low-cost loan from the government. The Plus Loans are really made for parents who want to take out a loan, pay it off over time at a really low cost.
KAGAN: And real quickly. People trying to figure out how much debt is too much. Where can they go to figure that out?
WILLIS: Well, you've got to ask yourself some soul-searching questions, like am I using credit cards to pay off my monthly overhead? Just the regular bill that normally you should pay out of cash flow. Make sure that you're spending your money wisely. And a great place to go to get more details on this afternoon, Daryn, money.com will run our column. And you will be able to see what you should ask yourself if you're afraid your debt has run too high.
KAGAN: Oh! Some honest questions. Gerri Willis, thank you for pointing those out.
WILLIS: You're welcome.
KAGAN: Always great to see you.
I want to go to Philadelphia now. Senator John Kerry is making an appearance there and we expect him to make some remarks that we will carry just ahead.
To give an advanced look at that, let's bring in our Joe Johns -- Joe.
JOE JOHNS, CNN CORRESPONDENT: Hey, Daryn, he's appearing at a union hall in Philadelphia. The interesting thing this morning is we're told by the campaign that Kerry is expected to respond to the Abu Ghraib report coming out. And CNN is told he is likely to call the abuse of prisoners in Iraq a failure of leadership that goes straight to the top.
We're told he'll call for a special independent commission to investigate the allegations of abuse in Iraq, abuse prisoners, of course. There have been charges the military is not properly able to investigate itself. As you know, this comes at a time the campaign is operating on dual tracks, handling the swift boat controversy we've heard so much about. At the same time, trying to return to the Kerry message about jobs and the economy. Later today, we're told the campaign is also going to feature some top economists in a conference called "Endorsing the Kerry Plan" -- Daryn.
KAGAN: All right. Joe Johns in Philadelphia with Senator John Kerry. When the senator speaks, and we expect him to make those remarks about the -- well, there is the senator. Looks like he'll probably make some housekeeping remarks first, some welcomes.
So, we're going to check back in, as the -- as the senator makes comments that we expect to hear. Let's take a break right now.
(COMMERCIAL BREAK)
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Aired August 25, 2004 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
DARYN KAGAN, CNN ANCHOR: Good morning from CNN Headquarters in Atlanta. I'm Daryn Kagan. Well, let's check out what is happening now in the news.
Officials in Russia say they have found all of the flight data recorders, but no survivors in the wreckage of two airliners that crashed under mysterious circumstances. Eighty-nine people are presumed dead. The planes disappeared from radar three minutes and 450 miles apart.
Witnesses reported explosions before the crashes. And there's one report that one plane had sent a distress signal that a hijacking was underway. Another possible cause includes pilot error or fuel problems.
There's a new development to report in the embattled Iraqi city of Najaf. Iraq's most powerful Shiite cleric, Grand Ayatollah al- Sistani, arrived in Iraq to take part in peace negotiations between rebel fighters and U.S.-backed Iraqi troops. Instead, he called on Iraqi to march on Najaf and, as he says, rescue it. A Najaf police chief says that would create new dangers.
Democratic presidential nominees John Kerry and John Edwards are stumping in the Rust Belt today. Kerry is in Philadelphia meeting with members of the Steamfitters Union. Edwards wraps up a two-day swing through Ohio and is taking part in town meeting type of event in Cleveland.
Homeland Security Chief Tom Ridge formally rang in today's session at the New York Stock Exchange. At the bottom of the hour, he'll join New York officials in a public viewing of some of the city's new security equipment. New York, of course, is host to next week's Republican convention. For that, stay on CNN. This is the most trusted name in news.
We are going to begin our hour in Russia. Investigators there are looking at a possible range of causes, including terrorism for near simultaneous crashes of two jetliners. The two planes simply dropped from radar within three minutes and about 450 miles apart. All 89 people aboard the two planes were killed.
Both planes left from Moscow last night. The first was bound for Volgograd. Witnesses say they saw it explode before it crashed. The second plane was headed for the resort town of Sochi. Russian news reports say that the plane transmitted a signal indicating that a hijacking was underway. Our Ryan Chilcote is in Moscow. He has the latest on the investigation. Ryan, hello.
RYAN CHILCOTE, CNN CORRESPONDENT: Hello, Daryn. Well, what we know at this point is from the Russian Federal Security Service. That is the Russian successor to the KGB and they have a lead on this very large investigation.
Now, the Russian president a couple hours after these two planes very coincidentally crashed, asked the Federal Security Service to take on this investigation. And what they have said is that they are looking, as you said, at all of the possible scenarios, all the possible causes, including terrorism.
But a deputy spokesman for the Federal Security Service, just a short while ago, said that so far they haven't found any concrete signs of terrorism in either of the crashes. And they're looking at some other things: checking out the possibility that these planes could have gotten some bad fuel or were improperly somehow fueled; or maybe there was mechanical failure; weather was involved. They're going through a bunch of scenarios now.
That's what we have on the record. The Russian Federal Security Service really not saying a whole lot, quite frankly. The investigation has been going on for a long time and we've been told very little. But interestingly, off the record, some sources have been telling Russian media agencies that, as you said, one of the planes had a distress signal, perhaps a hijacking signal, emitted from it just before it went off the radar. And another report that there may have been an attack on the crew of the second plane.
So, those are things we can't confirm, but definitely need to figure into our understanding of what might have happened to those planes.
KAGAN: Ryan, if you even go to the place of thinking about terrorism, you're going to think about Chechnya. There are elections coming up in that region. Any word from Chechen rebels on these two crashes?
CHILCOTE: Sure. Well, a representative from a more moderate wing, if you will, of the separatist movement in Chechnya who lives in the United Kingdom, has come out and said that the Chechen rebels didn't have anything to do with this. But the Chechens don't always claim responsibility for terrorist acts.
And it might not be in their interest to claim responsibility for this terrorist act. And they don't always act in unison. So, that doesn't necessarily mean a whole lot what this representative is saying.
Of course, the suspicion would fall on the Chechens, because there is a lot of Chechen terrorism inside of Russia, particularly before big political events in Chechnya, like we're expecting this weekend, an election there. KAGAN: Meanwhile, from President Putin, he was in one of the resort towns where the plane was headed. Back in the capital now, any word from him on the two crashes?
CHILCOTE: No. We've yet to hear from the Russian president. And that will be a big moment in the development of this story. He was in the Russian resort town of Sochi; incidentally, that was the place where he was when the Kursk went down. And he was criticized very much for not going public on that submarine when it went down and about the casualties, and the seriousness of the situation.
So, the Russian president perhaps learning his lesson then. He's come back to the Kremlin. And I think it is fair to say that we'll probably hear something from the Russian president later today.
KAGAN: Ryan Chilcote in Moscow. Thank you for that.
Interesting development from Iraq where the leading Shiite cleric there is calling for a march on Najaf to rescue the city. But with fighting continuing, Najaf's police chief is discouraging that kind of a move.
For more, let's go to Matthew Chance. He's on the videophone from Najaf.
Matthew, hello.
MATTHEW CHANCE, CNN CORRESPONDENT: Daryn, thanks and hello to you as well. A potentially dramatic development here in Najaf with the return of the Grand Ayatollah Ali al-Sistani from his sick bed in Britain, where he has been receiving heart treatment, of course, in the past three weeks since he's been away in Najaf, the holy city of the Shiia Muslims.
Fighting has been raging between U.S. forces and those of the Mehdi army militia. He's been making his concerns felt from his sick bed in London. But now that he's back in the country, he seems to be adopting a more forceful position to try and bring to a peaceful end this standoff in Najaf. Calling on Iraqis to converge on Najaf, in order, in his words, "to prevent a disaster befalling the holy city." That according to his aides that we've spoken to.
The implication being that if thousands of Iraqis come to Najaf, and then both sides would stop fighting and the crisis would be over. How it actually plays out on the ground though, may be altogether quite different.
We understand in the last few minutes there have been a press conference. A news conference announced by the Iraqi police, saying that they've arrested two senior aides to the radical Shiias cleric Muqtada al-Sadr.
We also understand that sporadic fighting continues on the streets of Najaf with fighters of the Mehdi Army. They are continuing to control the narrow streets around the Imam Ali Shrine, one of the most sacred shrine, or the most sacred shrine in Shiia Islam. What people are saying here is if the Grand Ayatollah were to issue a degree for those Mehdi fighters to stop fighting, to withdraw from their positions, then they would do that. Because he does have such authority, even with followers of Muqtada al-Sadr.
But the Ayatollah may be reluctant to do that, simply because over the past three weeks, the sort of status of Muqtada al-Sadr has been bolstered amongst the people. He will be very mindful of that when he makes any public pronouncement. But even so, both sides must now take accounts of the presence of this extremely revered figure in this country -- Daryn.
KAGAN: Matthew Chance in Najaf. Thank you.
This afternoon, the U.S. Army's report on the Abu Ghraib prison abuses will be released. The Fay Report comes one day after another investigation described events at the prison as, "sadism on the night shift."
Our Barbara Starr has that story.
(BEGIN VIDEOTAPE)
BARBARA STARR, CNN PENTAGON CORRESPONDENT (voice-over): The Army's so-called Fay investigation into questionable intelligence practices at Abu Ghraib prison is now expected to name some two-dozen personnel who could face further disciplinary or legal action.
This follows an advisory panel report yesterday from former Defense Secretary James Schlesinger, a devastating indictment of what he calls, "The chaos" that raged at the prison.
JAMES SCHLESINGER, CHMN., ABU GHRAIB PRISON PANEL: There was sadism on the night shift at Abu Ghraib, sadism that was not authorized. It was kind of "Animal House" on the night shift.
STARR: The pictures that stunned the world were not part of any effort to interrogate prisoners. At the end of the day, undisciplined soldiers with commanders not paying attention.
TILLIE FOWLER, MEMBER, ABU GHRAIB PRISON PANEL: The Pentagon failed to properly adapt to the situation on the ground, and to provide sufficient number of adequately organized and trained personnel needed to conduct detention operations in Iraq.
STARR: In Baghdad, as Lieutenant General Ricardo Sanchez struggled to fight the insurgency, the report notes that, "senior leaders should have moved to meet the need for additional military police forces." Sanchez and other top leaders criticized for not making clear who was running the prison, and for allowing confusing interrogation policies to emerge.
(on camera): But the panel said at the top it was mistakes, not legal culpability. And neither Defense Secretary Donald Rumsfeld nor General Richard Myers, chairman of the Joint Chiefs of Staff, should resign. Barbara Starr, CNN, the Pentagon.
(END VIDEOTAPE)
KAGAN: CNN is going to have live coverage of the release of the Fay Report. The news conference is scheduled to begin around 1:30 Eastern.
Pretrial hearings four of the seven soldiers accused of the abuse at Abu Ghraib wrapped up today at the U.S. base in Mannheim, Germany. Military prosecutors dismissed three charges against Specialist Megan Ambuhl, who still is accused of what her attorney called "failing to intervene or report abuse."
Staff Sergeant Ivan "Chip" Frederick will officially enter a guilty plea in October to some of the charges against him. An attorney for Frederick says abuses went on at Abu Ghraib before Frederick and his company arrived. Frederick's parents say he is not guilty of abuse or torture.
(BEGIN VIDEO CLIP)
JOANNE FREDERICK, SGT. FREDERICK'S MOTHER: I think that the people in Washington need to sit down and shut up or tell the truth.
(END VIDEO CLIP)
KAGAN: Frederick has asked his supporters not to blame the soldier who blew the whistle on the Abu Ghraib abuses.
Twenty-nine-year-old Australian accused of fighting against U.S. forces in Afghanistan appears before a military commission in Guantanamo Bay today.
Our Susan Candiotti joins us from the U.S. Navy base on Cuba.
Susan, good morning to you.
SUSAN CANDIOTTI, CNN CORRESPONDENT: Good morning, Daryn. The commission hearing this day is already underway in that building that you can see way off in the distance over my shoulder. Of all the detainees accused of war crimes, so far the charges against Australian David Hicks are the most serious.
All the detainees are accused of conspiracy to commit acts of terror, but Hicks is also charged with the attempted murder of coalition forces and aiding the enemy.
Now, the government also alleges that Hicks trained at al Qaeda camps, that he met with Osama bin Laden and helped him translate literature from Arabic into English.
Hicks is the only so-called enemy combatant whose family has been able to come to Guantanamo to listen in on these hearings, thanks to a donation from a woman in Australia. His father and stepmother arrived yesterday accompanied by the Australian ambassador. They've also hired a private attorney.
Now, at the Australian government's request, the family was allowed to meet with their son for about 15 minutes before the commission began this day. We are told the meeting was not monitored. However, it is likely, we are told, that Hicks was restrained in some way.
His father told us that he cannot explain why his son got into so much trouble. And he denies that his son is a terrorist.
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TERRY HICKS, FATHER: David's been an inventor all his life, right from that high. He always wanted to see what was over the next fence. And I think, as he got older, the fence got taller. So, he ended up in those circumstances.
(END VIDEO CLIP)
CANDIOTTI: This is the second of four days of these scheduled hearings. Yesterday, a preliminary hearing for Osama bin Laden's former driver; he put off entering a plea probably until November.
Human rights organizations and representatives from the American Bar Association are also here. They have been critical of the process. However, the Pentagon contends that these military commissions are the right way to try these cases.
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LT. SUSAN MCGARVEY, TRIBUNAL SPOKESWOMAN: People saw how the prosecution was able to present their side of the story. The defense could present their side of the story. And the panel and the presiding officer would hear all the issues and address them fairly.
So, I think that as this plays out, people will see it as a full and fair trial.
(END VIDEO CLIP)
CANDIOTTI: No firm trial dates have been set yet. The earliest might be in December. And remember that even if all of these people are found not guilty, because the U.S. government calls them enemy combatants, theoretically they could hold on to them for security reasons indefinitely, or until someone says the war on terror is over.
Back to you, Daryn.
KAGAN: Susan Candiotti, Guantanamo Bay, Cuba. Susan, thank you.
The swift boat ad controversy lives on. Max Cleland is heading to Crawford, Texas to make a personal plea to the president. A live report is ahead.
And a rare water phenomenon, find out where this waterspout popped up in our check of weather. And then later...
(BEGIN VIDEO CLIP)
DUANE "DOG" CHAPMAN, BOUNTY HUNTER: Freeze! Augustine, don't move.
I am a lawman on a mission from God.
(END VIDEO CLIP)
KAGAN: OK. From bounty hunter to reality television show star. A man who makes his living by bringing the bad guys in. You get to go along for the ride. We're going to visit with Duane "Dog" Chapman later on CNN LIVE TODAY.
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KAGAN: Force of nature and a fearsome leap from sea to land. This is some home video of a waterspout turning off the coast of St. Petersburg, Florida. And it charged on to land, it cost some minor damage, no injuries reported. I imagine the folks in Florida are just about over having any kind of weather, be news from where they are.
Money for the Republican National Convention and the funds aren't just coming from Republicans. Democrats have also helped to bolster the bottom line. We will tell you why.
And speaking of money, you think money, you think Gerri Willis.
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KAGAN: Here with a little advice how to keep debt at bay.
Gerri, good morning.
GERRI WILLIS, CNN-FN PERSONAL FINANCE EDITOR: Right. Yes, this is a flipside. This is having no money. If you are in your 30s, your 40s, we're going to tell you the debt time bombs to avoid, when CNN LIVE TODAY continues.
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KAGAN: Let's talk about a four-letter word. Debt, D-E-B-T, it is a four-letter word for a reason. If left unchecked it can sabotage your retirement plans, it can lead you to foreclosure and to bankruptcy. Yet some debt is unavoidable for most Americans.
In today's "Top Five Tips," Gerri Willis tell us advice on how to manage your debt today so it doesn't become an overwhelming problem later.
Gerri, good morning.
WILLIS: Hey, Daryn. Good to see you. Tip No. 1, watch out for mortgage debt overload. Look, it is very easy to overbuy on your house because all the forces at work are telling you to buy more, more, more, whether it is your real estate agent or your mortgage banker. They make more money if you spend more, so it is easy to get saddled with a huge mortgage.
Keep in mind here that people are starting to use their banker as a financial advisor.
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GREG MCBRIDE, BANKRATE.COM: Don't base this decision on how much the lender is willing to lend to you. They're in the business of making loans. It's up to you to make the payments every month. So, you have to decide, what is right for your budget and for your circumstances, even if that means taking on a smaller loan and buying a smaller house.
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WILLIS: So, you may want to think about having a mortgage that can be supported by just one income, in case one spouse wants to stop working. In any event, make sure that your mortgage debt is 28 percent or less of your monthly gross income.
And keep in mind, Daryn, that paying for the house doesn't just mean paying for the mortgage. It means upkeep, it means insurance, it means a whole lot of other things as well.
KAGAN: Oh, yes, it does. Lesson learned.
Let's talk about health insurance. Now, why are we talking about health insurance if we're talking about debt?
WILLIS: Well, the big problem with health problems is that they are often the thing that pushes people into bankruptcy. In fact, according to a recent survey, some 19 percent of people in bankruptcy, who had been middle-class, are there because they had health problems.
So, obviously, you want to make sure you're paying your health insurance premiums. Beyond that, you also want to buy disability insurance, because that's where you often can't afford the big bills. Disability insurance will cover you for illnesses that last six months or more. And that can be the critical missing link if you have a healthcare problem.
KAGAN: Most debt for people, a lot of people, is all about credit cards.
WILLIS: Yes. You know, the numbers are astounding. Americans have something like $800 billion in credit card debt. Really ugly. And here is another ugly statistic. The industry, credit card industry, makes 77 percent of all outstanding balance on credit cards are from late fees.
KAGAN: Wow!
WILLIS: So, you can save yourself a ton of dough by just paying your credit card on time. One easy way to do is automate your payment. So, that payment goes out whether you remember to do it or not. You avoid the late fees, which are now averaging, like $32 each time you forget.
KAGAN: That is incredible.
If you're trying to clean things up, your 401(k) is not a cookie jar.
WILLIS: Yes. A lot of people in the 30s and 40s are thinking about getting their kid into college. And how are they going to pay for it? So many are reaching for the 401(k). A loan on their retirement dollars is not a good way to go because you really can't make up that money, even if you put it back in later. It doesn't have the time to grow and appreciate.
So, instead of doing that, take out a low-cost loan from the government. The Plus Loans are really made for parents who want to take out a loan, pay it off over time at a really low cost.
KAGAN: And real quickly. People trying to figure out how much debt is too much. Where can they go to figure that out?
WILLIS: Well, you've got to ask yourself some soul-searching questions, like am I using credit cards to pay off my monthly overhead? Just the regular bill that normally you should pay out of cash flow. Make sure that you're spending your money wisely. And a great place to go to get more details on this afternoon, Daryn, money.com will run our column. And you will be able to see what you should ask yourself if you're afraid your debt has run too high.
KAGAN: Oh! Some honest questions. Gerri Willis, thank you for pointing those out.
WILLIS: You're welcome.
KAGAN: Always great to see you.
I want to go to Philadelphia now. Senator John Kerry is making an appearance there and we expect him to make some remarks that we will carry just ahead.
To give an advanced look at that, let's bring in our Joe Johns -- Joe.
JOE JOHNS, CNN CORRESPONDENT: Hey, Daryn, he's appearing at a union hall in Philadelphia. The interesting thing this morning is we're told by the campaign that Kerry is expected to respond to the Abu Ghraib report coming out. And CNN is told he is likely to call the abuse of prisoners in Iraq a failure of leadership that goes straight to the top.
We're told he'll call for a special independent commission to investigate the allegations of abuse in Iraq, abuse prisoners, of course. There have been charges the military is not properly able to investigate itself. As you know, this comes at a time the campaign is operating on dual tracks, handling the swift boat controversy we've heard so much about. At the same time, trying to return to the Kerry message about jobs and the economy. Later today, we're told the campaign is also going to feature some top economists in a conference called "Endorsing the Kerry Plan" -- Daryn.
KAGAN: All right. Joe Johns in Philadelphia with Senator John Kerry. When the senator speaks, and we expect him to make those remarks about the -- well, there is the senator. Looks like he'll probably make some housekeeping remarks first, some welcomes.
So, we're going to check back in, as the -- as the senator makes comments that we expect to hear. Let's take a break right now.
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