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CNN Saturday Morning News

Libyan Officials Deny Reports Gadhafi Seeking Refuge in Neighboring Countries; Obama States 'There Are Things We Can Do' About Unemployment; 2011 A Costly Year in Natural Disasters; Reports From Iran: American Hikers Sentenced to Eight Years

Aired August 20, 2011 - 09:00   ET

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

ALINA CHO, CNN ANCHOR: Top stories now.

He remains defiant, but there are new indications this morning that Libyan dictator Moammar Gadhafi's 42-year reign may be coming to an end. Two U.S. officials say Gadhafi may be positioning an exit or possible last stand as rebel forces advance on the capital of Tripoli.

A former Libyan prime minister has joined the opposition. A spokesman for the Libyan government denies reports that Colonel Gadhafi is trying to make accommodations for his family outside of Libya.

Convicted criminals and those who pose the greatest threats to national security and public safety, well they are the undocumented immigrants most likely to be deported under a new policy outlined Thursday by Homeland Security Chief Janet Napolitano.

And $35 billion in damage, that's the running estimate just so far this year from costs associated with natural disasters.

But first, more NATO air strikes around the Libyan capital of Tripoli overnight. They come as Libyan officials deny reports that Moammar Gadhafi and his family are looking to leave the city, possibly the country.

CNN's Matthew Chance is live for us in Tripoli this morning.

So, Matthew, good morning. What is the latest from there?

MATTHEW CHANCE, CNN SENIOR INTERNATIONAL CORRESPONDENT: Well, we've not confirmation, first of all, of these rumors that have been circulating, Alina, about Colonel Gadhafi attempting to make contact with other Arab countries, attempting to find a secure place for his family to relocate to, possibly for him to flee to, as the rebels consolidate their military gains in various places around the Libyan capital Tripoli.

We've had denials, in fact, to that effect, saying that -- from the officials we've spoken to here in Tripoli, saying that that's not the intention of colonel Gadhafi. That despite the rebel gains that they're admitting have been made, particularly in Zawiya, the town to the west, Colonel Gadhafi, they say, is determined to stay where he is in Tripoli. And he, himself, has been calling on his followers, his supporters here in the Libyan capital -- and it's quite a hotbed of support for the Libyan leader -- calling on them to resist any push by the rebels towards the capital, Alina.

CHO: Matthew, as you know, the State Department is telling CNN it's not a matter of if but when Gadhafi will step down. We'll have to see if that happens.

Meanwhile, NATO certainly is stepping up the pressure, isn't it?

CHANCE: Yes, it is. It's been carrying out much more intensive airstrikes in Tripoli over the course of the past several days. All along, of course, with these rebels making these significant military advances in various parts of the country, most notably in Zawiya but also in the south and to the east of the capital as well.

They've only managed to do that because they've had such (AUDIO GAP) air support from, you know, French and British warplanes that are patrolling the skies as part of the NATO mission to enforce the United Nations Security Council Resolution 1973.

Yes, they've been hitting various locations in Tripoli. Yesterday, we were taken to what we were told was a residential house which had been totally destroyed by multiple missile strikes. A school next door had also been damaged as had a medical store.

We didn't see evidence on the ground that this was a military facility, although it emerged during the visit that the house wasn't, in fact, just a house of an ordinary citizen, it was the house of the head of Libyan intelligence. So, perhaps, that's the reason why it was targeted in this way by NATO warplanes.

We understand that the Libyan intelligence head, his name is Abdullah Senoussi, was not killed in the strike but a member of his staff, one of his domestic staff in the house was killed according to officials that took us around that scene.

CHO: The head of intelligence and also the brother-in-law, incidentally, of Moammar Gadhafi himself.

Matthew Chance live in Tripoli for us with that update. Matthew, as always, thank you.

In the United States we want to get back to that sputtering economy. The Dow was down again yesterday, and, of course, the Dow has been taking a beating. All of the markets have.

President Obama, meanwhile, says there are steps that we can take to spark this economy. Watch.

(BEGIN VIDEO CLIP)

BARACK OBAMA, PRESIDENT OF THE UNITED STATES: There are things we can do right now that will mean more customers for businesses and more jobs across the country. We can cut payroll taxes again so families have an extra thousand dollars to spend. We can pass a road construction bill so construction crews who are now sitting idle, can head back to the work site, rebuilding roads and bridges and airports.

(END VIDEO CLIP)

CHO: That's from the president's weekly address.

Meanwhile, Ohio Governor John Kasich gave this morning's Republican weekly address. He says the real problem is leadership.

White House correspondent Dan Lothian is following the president from his vacation spot in Martha's Vineyard.

Dan, as you know, the market lost more than 1,300 points in the -- in just this month. You know, how is the president dealing with the criticism that he shouldn't be taking a vacation right now, that he should be back in Washington?

DAN LOTHIAN, CNN WHITE HOUSE CORRESPONDENT: Well, you know, the White House will push back on that saying that the president deserves to go on vacation and that even though he's away from the White House, he is not removed from his job.

And evidence of that was the first picture that we saw of the president here on Martha's Vineyard was of the president sitting down with his counterterrorism adviser, John Brennan. He was getting briefed on a whole host of national security issues.

In addition to that, the president, also we are told, received paper briefings from his economic team. And then, next week, all of next week, one of his top economic advisers will be here to give the president, we're told, frequent updates on the economic situation.

And as you know, the big push from the White House is looking forward to this jobs plan that the president wants to roll out. After he returns to Washington, he'll deliver a speech and also lay out some details, which we are told will be new ideas beyond some of the things that you just heard from the president there in his weekly address. Ideas that the White House hopes will be able to spark some job growth and go a long way towards turn this ailing economy around, Alina.

CHO: Are we getting any sense, though, Dan, what those ideas are in terms of creating jobs in this country? A lot of people are very anxious to hear.

LOTHIAN: Right, and we're still waiting to hear what some -- those details are.

We know based on talks with some White House aides that the president is coming up with some ideas along with this advisers. So this will be sort of a compilation, if you will, some ideas that the president has answered others that are brought forward by his top advisers. Clearly, what it will focus on, though, are issues of infrastructure. You've just heard the president talk about that. The idea of finding areas across the U.S. where you can put some of the construction, idle construction workers, back to work.

These are just small things, but if you put that together with some other pieces, they believe it could lead to some job creation in areas, especially some states that are hardest hit.

CHO: At 9.1 percent in July, we certainly need it.

Dan Lothian, live in Martha's Vineyard, great assignment, Dan, and good to see you. Enjoy the rest of your weekend.

LOTHIAN: That's right, I'm not complaining.

(LAUGHTER)

CHO: You better not. I'm going to come after you.

Meanwhile, an 82-year-old woman in Brooklyn, New York, is fighting eviction from her home.

(BEGIN VIDEO CLIP)

MARY LEE WARD, FIGHTING EVICTION: It means everything because I have put everything into this house all these years.

(END VIDEO CLIP)

CHO: I love this woman. She says she's the victim of predatory lending and she's not going to move without a fight. We'll have her story after the break.

(COMMERCIAL BREAK)

CHO: A woman in Brooklyn, New York has lived in the same home for 42 years. But soon, she may be getting kicked out. She's a great-grandmother and she says she's the victim of predatory lending. And just like a tough New Yorker, she isn't leaving without a fight.

Our Susan Candiotti reports.

(BEGIN VIDEOTAPE)

PROTESTOR: We want justice for our people.

PROTESTOR: Honk your horn.

SUSAN CANDIOTTI, CNN CORRESPONDENT (voice-over): Early Friday, supporters rallied outside the home of 82-year-old Mary Ward. A marshal was due any minute to evict her from the only home she has known since 1969.

WARD: Well, it means everything because I have put everything in the house all these years. CANDIOTTI: Ward ran into trouble in the mid-1990s when she refinanced in order to raise cash to fight for custody of her great- granddaughter. She was hoping to cash out $10,000.

WARD: I turned and looked at the check when he handed it to me. I almost passed out. It was $1,467.51.

CANDIOTTI: Far less than the $10,000 she expected. She still has a copy of that check.

WARD: The very next day, I went to the district attorney's office cause I didn't know what to do.

CANDIOTTI: The lender turned out to be shady, but Ward could not get the loan rescinded and the house fell into foreclosure. After a long legal battle, her home was sold at auction three years ago; the new owner wants her out.

WARD: I have no intention of leaving. Now if they break in and take me, I won't resist.

CANDIOTTI: CNN was inside Ward's home mid-morning when her local assemblywoman interceded, setting up a meeting with Ward and the new owner.

ANNETTE ROBINSON, NEW YORK STATE ASSEMBLYWOMAN: The marshal will not be taking any action today.

(CHEERING & APPLAUSE)

CANDIOTTI: After the closed-door meeting, CNN caught up exclusively with the owner. He told us he is considering a proposal from Ward's lawyers to hand the property over to a non-profit that would allow Ward to stay in her home.

SHAMEEM CHOWDHURY, BUILDING OWNER: You know, I had a meeting with them and we try to work together as much as --

QUESTION: Do you -- you could not come to a resolution upstairs? What -- why was that not possible?

CHOWDHURY: I did not get a chance to talk to her. This is the first day I'm talking to her.

QUESTION: This is the first day?

CHOWDHURY: Yes.

QUESTION: Do you think you'll be able to come to a resolution?

CHOWDHURY: I hope so.

QUESTION: Do you have an objection to letting her stay in her house? She is now living --

CHOWDHURY: I will talk to her again, OK? Thank you. CANDIOTTI (voice-over): Ward, the proud granddaughter of a slave, returned home from the meeting to cheers.

(CHEERING)

CANDIOTTI: She is safe from eviction for a few more weeks, but after that, her fate depends on whether her lawyers can strike a deal with the owner.

WARD: Yes, it will be hard. But justice is going to be done, and soon. Dignity for all. They are trying to take away our dignity, but they'll never take away my dignity.

(END VIDEOTAPE)

CHO: Great story. Susan Candiotti joins us live now from New York.

And, Susan, first of all, I love this woman. I think she is extraordinary.

Second of all, it's amazing how the community has rallied around her. So what's next for Miss Ward?

CANDIOTTI: Yes, she really has rallied a small army of supporters.

Here's one of the options. She has some money in escrow, if she turns that over to the new owner and the owner, in turn, turns over this property to a non-profit and takes a tax break for himself, well, perhaps then it would go away and she could continue to live here, the non-profit would let her do that.

But this is really still very much an open -- up in the air. Everyone has to agree to a lot of different moving parts here. So who knows?

But, as we said, for now, she's staying put and she has a lot of people backing her up, as you heard, Alina.

CHO: I think it's a great story, and I think it's great you're following it and you'll keep us up to date on all the developments.

Susan Candiotti live for us in New York. Thank you very much, Susan.

Tornadoes, flooding and droughts, we've certainly seen our fair share of natural disasters this year and you won't believe the price tag that's come with them. We'll tell you how much next.

(COMMERCIAL BREAK)

CHO: Well, the drought in Texas is just one of many huge and costly natural disasters in the U.S. this year. The total cost, according to the National Weather Service, is more than $35 billion, and nine of the disasters cost $1 billion each or more. Reynolds Wolf is with us now.

It's like a walk down memory lane, and it's a memory we don't want to remember, actually, because a lot of these were so deadly as well.

REYNOLDS WOLF, AMS METEOROLOGIST: No question.

But isn't interesting, too, that when we think about droughts, droughts are such a just a prolonged event. We often think of a weather disaster being a hurricane or tornado, strikes quickly and affects so many people. A drought is something that just takes a very long time and the repercussions can be felt for a very long time also.

Take a look at what we have, when you measure the drought with other events this year, Alina, we've had monstrous situations.

First and foremost, one of the ones we have to mention the $9 billion and 327 deaths resulted from the southeast and Ohio Valley Midwest tornado outbreak. Certainly a terrible one from April 25th through 30th, includes, of course, the one in Tuscaloosa, Alabama.

Another one, well, the tornado outbreak that affected us in May, that is -- includes Joplin, Missouri, $7 billion, and deaths resulted in 177.

Take a look also some other ones. Of course, the $5 billion issue with the droughts across the Midwest, and then the same time another big one we've had, some of you may have forgotten, years have been flying by, that would be the flooding along parts of the Mississippi River, including Tunica, Mississippi, as you see here, $4 billion.

Certainly, just an amazing and costly season we've had so far. And keep in mind, hurricane season goes all the way through November 30th, and although things have not been crazy as of yet, there's that potential so we certainly have to be advised.

And speaking of severe weather, we certainly had a dose yesterday in parts of Pennsylvania. Today, there will be a chance of more severe weather, this time across parts of the Ohio Valley and the mid- Mississippi Valley. If you're tuning in, say, from St. Louis, Chicago, you might be dealing with some delays into the afternoon with some strong thunderstorms.

Hazy, hot and humid across parts of Texas. A chance of scattered thunderstorms into the four corners and out to the Eastern seaboard. Relatively dry until you get down into the Carolinas, chance of storms there.

Now in terms of highs, 92 degrees in Washington, D.C., 92 in Atlanta, 92 Tampa, 93 in New Orleans, 107 in Dallas, 86 in Denver, 94 in Portland, and 84 degrees expected in Seattle on this day. Get out of there. There you go.

Alina, back to you. CHO: All right, Reynolds, thank you very much.

We are watching some breaking news out of Iran at this hour. CNN has literally just confirmed that two Americans accused of spying there have been sentenced to eight years in prison. They are Shane Bauer and Josh Fattal. They were arrested after crossing into Iran from Iraq during a 2009 hiking trip.

A third hiker, Sarah Shourd, you may recall, also was arrested but was released last fall for medical reasons. She said they did not know they had crossed the border while hiking in Iraqi-Kurdistan.

We'll bring you more on this breaking news as we get more information.

We are going to go now live -- am I hearing this correctly? -- to Shirzad? I'm sorry. I'm not hearing the name. We're -- OK. We're going to go live now to an Iranian journalist who joins us now by phone.

Tell us, these two hikers were sentenced to eight years in prison, was this a big surprise?

SHIRZAD BOZORGMEHR, IRANIAN JOURNALIST (via telephone): It was rather a big surprise, especially to their attorney, Mr. Shafiei, who I've been in contact with constantly. And he was hoping that they would be given two years each, which was exactly the amount of time that they had already served in prison so they would be eligible for immediate release. But apparently that has not happened.

But we are still not sure whether this report is true or false because the lawyer has not been informed of this court decision. And until he hears officially from the judiciary, from the court that they have been sentenced to eight years, we cannot go with that.

I talked to him a few minutes ago. He was still hoping that these reports were false and not correct, and that a sentence of two years would be declared by the court. But we'll have to wait and see a few hours to see what exactly is happening.

CHO: And then what the fate of this third hiker who was released last year for medical reasons?

BOZORGMEHR: Well, she was exactly released for that reason because there were some doubts about her health and the government of Iran, in a statement, said that considering the Islamic kindness and generosity they've decided to let her go because of her physical condition.

CHO: I see. But I understand she was still a defendant. I wasn't clear about whether there would be some sort of future repercussions as a result.

I want to go now to Susan Candiotti who joins us now by phone. She has been on the phone. We're still trying to get Susan Candiotti. She has been talking to the family of the hikers. And do we have her? She spoke to -- do we have Susan Candiotti.

Susan, are you there?

All right, Shirzad Bozorgmehr is still on the phone with us.

Give us a little bit of background on this case. I know that a lot of people have, obviously, heard about these Iranian hikers being held for this time and being accused of spying, but give us the background of this story?

BOZORGMEHR: We seem to have a bad line.

But the background is that just about -- just a little over two years ago, the three Americans, Shane Bauer, Josh Fattal and Sarah Shourd, came into Iran, according to Iranian authorities, illegally, and they were arrested by the border control and brought to Tehran and put on trial.

The trial took about two years, just a little over two years, and they were apparently now, we can't confirm, they've been convicted of spying and illegal entry. They supposedly had been given five years each for spying and three years each for illegal entry.

But as I said, the man who has to be informed of this, their attorney, just told me that he has not been informed of the court's final sentence yet. If this is the case and if they are indeed sentenced to eight years each, they will have 20 years beginning today to appeal the sentence of the courts. And of course, the attorneys --

CHO: Of course, we -- all right. And, Shirzad Bozorgmehr, we thank you for joining us. And you can bet there will be appeals in this case.

Meanwhile, Susan Candiotti joins us now by phone. She has been following the story closely as well.

And, Susan, I understand you have spoken to the families of the hikers in recent days and weeks. What have they told you?

CANDIOTTI (via telephone): Well, certainly, in recent weeks through their representative. We have not been able it to reach them as yet this day, Alina.

But from the get-go they have insisted that if their sons and daughter had crossed the border, it was simply by accident. In fact, they've said as time has gone on, that they were drawn over the border while they were on a hike by some Iranian guards. So this has been at issue for a long, long time.

As you just heard, the families have been following this very closely. They have hoped and prayed, frankly, that this sentence would not come down, or that if they were given a sentence, a guilty sentence, that they would be allowed to be released because of all the time they have served so far, more than two years spent in a jail. The -- they've had a tremendous amount of support since the beginning from people who are following their case online that have spoken out on their behalf, from world figures who have come to the hikers' defense.

And remember, Alina, it was just last year that Sarah Shourd was released and she has also been doing her best, going to the United Nations, speaking before various groups, asking for help to have them released.

So, if this sentence is accurate, if it holds up, this would be devastating to everyone.

CHO: It most certainly will.

Susan Candiotti joining us live.

The headline there, out of Iran, is that two out of the three American hikers who have been held in Iran, one, Sarah Shourd, being released for medical reasons, have been sentenced to eight years in prison, five of them for espionage.

We are watching this case very, very closely and we will have much more in the next half hour.

In the meantime, we do want to check our top stories at the bottom of the hour.

Rebel leaders in Libya say they are days away from moving on the capitol of Tripoli. U.S. officials say Moammar Gadhafi could be preparing for a last stand. Libyan officials are disputing rebel claims that Gadhafi is seeking refuge for his family.

Three men who were teens when convicted --

(AUDIO GAP)

CHO: And another rough week for the markets. In New York, the Dow closed down almost 173 points, capping a fourth straight week of losses for investors. Experts say the markets are volatile because of fears of another U.S. recession and uncertainty in Europe's financial system.

America's future leaders, where will they come from? More importantly, how do you raise one? Christine Romans goes straight to Deepak Chopra for answers.

"YOUR BOTTOM LINE" starts right now.