[Wolf Blitzer, Cnn Anchor:] Intelligence uproar. Chairman Devin Nunes reject calls for him to step aside from his committee's Russia investigation amid growing controversy and partisan rancor. I will ask the former CIA Director and Defense Secretary Leon Panetta for his take of Nunes' actions and his credibility. Regulation rollback. The president signs a sweeping executive order to undo the Obama administration policies to combat climate change. Will it create jobs, as Mr. Trump claims? And accepting blame? A top U.S. commander now concedes that an airstrike likely killed innocent Iraqis. Did ISIS deliberately lure coalition forces to attack a location, knowing dozens of civilians would die? We want to welcome our viewers in the United States and around the world. I'm Wolf Blitzer. You're in
[The Situation Room. Announcer:] This is CNN breaking news.
[Blitzer:] Breaking news this hour: The White House is pushing back against new controversy in the House investigation of the Trump camp's contacts with Russia. The press secretary, Sean Spicer, flatly denying a report that the administration sought to block testimony by the former acting Attorney General Sally Yates. But Democrats are questioning whether a House Intelligence Committee hearing that had been scheduled for today was canceled to prevent Yates from talking publicly. This is another cloud over the investigation led by Republican Devin Nunes, the House Intelligence Committee chairman. Tonight, Nunes is rejecting growing calls for him to step aside from the probe, as even some Republicans are joining Democrats and raising concerns about his credibility. Also tonight, the Senate Intelligence Committee is moving forward with plans to question the president's son-in-law, Jared Kushner, about his Russia contacts. The panel's chairman revealing Kushner's testimony will be conducted in private and likely under oath. The president, meantime, is making good on a campaign promise to gut Obama era environmental policies. His just-signed executive order is designed to put energy independence and jobs over efforts to combat climate change. This hour, I will talk with Leon Panetta, who served as defense secretary and CIA director under President Obama. And our correspondents and analysts are also standing by. First, let's go to our senior White House correspondent, Jeff Zeleny. Jeff, Sean Spicer says the administration would actually welcome testimony by former the acting attorney general, Sally Yates.
[Jeff Zeleny, Cnn Senior Washington Correspondent:] Wolf, that is what Sean Spicer said today at the White House briefing. But I can tell there are some conflicting accounts of how serious the White House is about this testimony. Now, there was scheduled to be a hearing today on Capitol Hill, another hearing about these Russian allegations. Of course, that was called off. But Sally Yates was going to be one of the star witnesses. Now, you will remember she was a deputy attorney general in the Obama administration and she was a holdover. She was the acting attorney general in the first days of the Trump administration until she was fired. That's a bit of background here. But at the press briefing today, Sean Spicer said they would welcome her testimony.
[Sean Spicer, White House Press Secretary:] On the 24th, Ms. Yates' attorney sent a letter to the White House counsel requesting that consent, specifically stating that if they did not receive a response by March 27 at 10:00 a.m., they would quote "conclude that the White House does not assert executive privilege over these matters." The White House did not respond and took no action that prevented Ms. Yates from testifying. That's the story. That's what documents show. I hope she testifies. I look forward to it. It was never let's be honest. The hearing was never was actually never notified. If they choose to move forward, great. We have no problem with her testifying, plain and simple.
[Zeleny:] But the question here is executive privilege here. And now the issue we're talking about, Wolf, is the investigation into Michael Flynn and contacts he had with Russian operatives. Of course, he is the former national security adviser who was fired. But Sally Yates was involved in the investigation into him in the final weeks of the Obama administration. So she has a perspective on this that she wanted to share with the hearing today, with the House Intelligence hearing, which was abruptly canceled, Wolf. So, even though the White House is saying they would like to have her testify, we will see if that ever happens in the House committee or on the Senate committee, which is also under way Wolf.
[Blitzer:] I'm sure it would have been a fascinating hearing. I was looking to that testimony. Jeff Zeleny, thanks very much. Also, tonight, the House Intelligence Committee chairman insists the panel's Russia investigation is in fact moving forward, as he rejects growing calls to recuse himself. Let's go to our senior congressional reporter, Manu Raju. Manu, yet another chance to question Nunes today.
[Manu Raju, Cnn Senior Political Correspondent:] Yes. That's right. I mean, he is really defiantly staying in that position, believing that these questions for him to step aside essentially amount to partisan politics. That's what even some Republicans on the committee, including Peter King of New York, told me earlier today. Now, this all coming afternoon Nunes went and briefed the White House, President Trump last week over surveillance information that he learned from a secret source on White House grounds about some communications with Trump officials that were picked up in some of these intelligence reports. But also his decision to abruptly cancel Tuesday's public hearing that was supposed to happen today and also the committee, because of this, canceling all other private briefings that were going on today, raising real questions about whether this committee can go forward. Now, when I asked Nunes today, will you listen to these Democratic calls to recuse yourself, he said he would not.
[Raju:] But are you going to stay as chairman and run this investigation?
[Rep. Devin Nunes , California:] Well, why would I not? You guys need to go ask them why these things are being said.
[Raju:] Can this investigation continue as you as chairman?
[Nunes:] Why would it not? Aren't I briefing you guys continuously and keeping you up to speed?
[Raju:] But they are saying that it cannot run as you as chairman.
[Nunes:] You have got to go talk to them. That sounds like their problem. I don't have my colleagues are perfectly fine. They know we're doing an investigation and that will continue.
[Raju:] Now, we know today's hearing was supposed to also feature Sally Yates, as Jeff Zeleny was just reporting. Now the question had been whether or not the White House was seeking to block her testimony. The White House denied that, of course. But when I asked Devin Nunes whether or not the White House had any role in urging him to cancel today's hearing, he would not say.
[Nunes:] Look, you guys are just speculating. I'm sorry. Whenever there's time, we will did a press...
[Raju:] But did they ask you to cancel the hearing today?
[Nunes:] Come on, guys. I mean...
[Raju:] Why did you cancel the hearing?
[Nunes:] There's no nothing has been canceled.
[Raju:] Now, Nunes also today earlier suggesting that he is open to having FBI Director James Comey and Mike Rogers, the NSA director, come before the committee in a private briefing. They actually canceled that briefing today, but Adam Schiff, a top Democrat, said he wants to have a public hearing before moving forward on some of their private briefings. But the Senate Intelligence Committee Wolf, moving forward on its, including starting to make plans to interview Jared Kushner, who is President Trump's son-in-law and a top adviser, about his contacts with Russian officials. The chairman of that committee, Richard Burr, telling me it is likely that that testimony will happen under oath, but it will be a private setting, not a public setting. We will see whatever we may learn from this private testimony, Wolf.
[Blitzer:] Manu Raju getting some excellent exercise up on the Hill as well. Manu, thank you very much. We are also learning more tonight about the Senate's Russia investigation and plans to question the president's son-in-law and senior adviser, Jared Kushner. His testimony is likely to be under oath and it's likely also to focus at least in part on his newly disclosed meeting with a Russian banker who has close ties to Vladimir Putin. CNN's Jessica Schneider is looking into all of this for us. This hearing is supposed to take place, I take it, behind closed doors.
[Jessica Schneider, Cnn Correspondent:] Yes, that's right, Wolf. The chairman, Richard Burr, saying that Kushner's testimony will be that private interview, but likely under oath. And, of course, on the list of likely questions, why did Jared Kushner take a meeting with the chair of a state-run Russian bank at the height of the transition?
[Schneider:] Jared Kushner met with this Russian banker during the transition. Sergey Gorkov is the chairman of VEB Bank and has deep ties to Russian government. Gorkov was appointed to his job by Russian President Vladimir Putin. White House disclosed that Kushner met with Gorkov at the request of Russian Ambassador Sergey Kislyak in December 2016, but insists this was all part of Kushner's transition duties. "Jared attended the meeting in his capacity as transition official. Nothing of substance was discussed. There was no follow-up." But the bank says its executives met with Kushner as part of a road show of business meetings in 2016, disclosing that Gorkov met with a number of representatives from the largest banks and business circles in the United States, including the head of the Kushner Companies, Jared Kushner. So which was it, a transition officials meeting or a meeting to discuss private business? The White House not answering requests to clarify, instead insisting all inquiries about the administration's ties to Russia are just another distraction.
[Spicer:] If the president puts Russian salad dressing on his salad tonight, somehow, that's a Russian connection.
[Schneider:] But ethics experts say there is cause for concern. VEB Bank was under U.S. sanctions for three years. Generally, simply meeting with an entity under sanctions isn't necessarily a problem, but doing business with it might be. When Kushner met with Gorkov, he was still CEO of Kushner Companies. At the time, the company was trying to attract financing for a building project in Manhattan.
[Dave Levinthal, Center For Public Integrity:] Jared Kushner's position within the Trump transition and administration was well known to the people who he was doing some sort of business with. So that's where you get the issue of gray area and lines blurring between what somebody does in his or her private capacity as a business person and what somebody is doing in their public capacity as an official or an adviser to the most powerful man in the world.
[Schneider:] VEB Bank's strategy posted to its Web site highlights its tight relationship with the Russian government, stating, "Together with the government, we will select the most promising growth areas in the economy." A Kremlin spokesman says the Russian government was not aware of the meeting between Kushner and Gorkov. The chairman of the Senate Intelligence Committee, Richard Burr, tells CNN that Jared Kushner will likely testify under oath, but privately to senators. Republican Senator Susan Collins says her committee needs to clarify whether Kushner was acting as a member of the Trump transition team or his private business, but Collins suspects the Russian bank might just be trying to drum up more confusion.
[Sen. Susan Collins , Maine:] This has been a longstanding practice of the Russians to spread disinformation. So, I was not surprise when they contradicted Mr. Kushner's explanation of why he had these meetings.
[Schneider:] And the Senate Intelligence Committee begins its open hearings on Thursday. The first day will feature Russian and cyber- security expert, but still no word yet on when Jared Kushner might actually appear before the committee Wolf.
[Blitzer:] All right, Jessica, thank you, Jessica Schneider reporting. Let's get some more on all of this with the former defense secretary, the former CIA director under President Obama, Leon Panetta, who is joining us now. Mr. Secretary, thanks for joining us. I want to get to all of the developments involving Jared Kushner in a few moments, but first let me ask you about the canceled testimony of the former acting Attorney General Sally Yates. Both the White House and the House Intelligence Committee chairman, Devin Nunes, maintain that they did not communicate about her testimony and that they still want to hear from her. So why do you believe Chairman Nunes canceled that important hearing that had been scheduled today with Yates, the former CIA director, the former director of national intelligence as well?
[Leon Panetta, Former U.s. Secretary Of Defense:] Well, that's a major question, Wolf, why those hearings would be canceled, canceled abruptly. The whole purpose here of these investigations is to determine the truth, the truth of what Russians did in the election, what can we do to prevent that from happening in the future, and was there any collusion between the Trump campaign and the Russians? Those are the issues. We're entitled to the truth. The only way you find the truth is by allowing testimony to take place, by gathering evidence and by trying to find the facts involved. And when you cancel hearings, when you fail to look at the facts and the evidence, it does impact on the credibility of that investigation.
[Blitzer:] People are wondering why did those public hearings that have been announced for a while, why were they suddenly canceled? In letters published, Mr. Secretary, by "The Washington Post," the Justice Department wrote to the law firm representing the former acting Attorney General Sally Yates. Let me read a couple sentences from that letter. "Ms. Yates seeks authorization to testify about communications she and a senior department official had with the Office of the Counsel to the President. Such communications are likely covered by the presidential communications privilege and possibly the deliberative process privilege. The president owns those privileges. Therefore, to the extent Ms. Yates needs consent to disclose the details of those communications to the House Permanent Select Committee on Intelligence, she needs to consult with the White House." The White House press secretary, Sean Spicer, said today the White House did not exert executive privilege and would have let her testify, her testimony proceed, had the hearing not been canceled. Explain this idea of executive privilege to our viewers. What's at issue here?
[Panetta:] Well, there is something called executive privilege, where communications between members of an administration and the president are protected under this executive privilege rule. It seems clear that somebody raised the issue of executive privilege. However, the press secretary made clear that they are not asserting that privilege. And obviously the deputy attorney general now has the opportunity to testify. I guess my recommendation would be that the committees ought to immediately proceed to get her testimony.
[Blitzer:] When a former Department of Justice employee like her is asked to testify, is it typical to have this type of negotiation, possible restrictions on his or her testimony?
[Panetta:] Normally, the role of a White House counsel is to raise the issue of whether or not executive privilege applies. That was certainly done in the time I was in the White House. And the president usually operates to try to protect that privilege. However, if there is an investigation that is going on, then clearly that privilege can be waived. It sounds like they are willing to waive that privilege. And I think that's good, because we will be able to find the facts out as to what she knew and what she didn't know.
[Blitzer:] Yes, Sean Spicer mincing no words. He says the White House wants her to testify. Let's see if that hearing does in fact take place. Last week's testimony from the FBI director, James Comey, the National Security Agency director, Admiral Mike Rogers, contradicted President Trump's wiretapping claims against President Obama, considering the former acting Attorney General Yates' role in the departure of General Michael Flynn as the national security adviser from the Trump administration, is it likely that her testimony would also contradict previous statements from the White House on Russian contacts?
[Panetta:] I think the issue here is, what did she know about the investigation, particularly as it related to the national security adviser, Flynn? And what were his contacts with the Russians and was he forthright in explaining what those contacts were about? I suspect that that is the main area that she would testify to, although she is a deputy attorney general and is aware of a number of elements that may be involved in this investigation.
[Blitzer:] Yes. And as important as her testimony would have been if there had been that hearing today, the former director of national intelligence, James Clapper, and the former CIA director, John Brennan, they were also scheduled to testify in an open hearing today. Their testimony could have been even more significant in the American public's learning what was going on. I assume you agree?
[Panetta:] There's no question. This is an intelligence issue. Our intelligence agencies are the ones who determined that Russians were deliberately trying to influence our election. Issues surrounding what Russians were doing clearly came to intelligence officials that were involved in this matter. So their testimony, I think, would be critical to being able to determine what exactly the facts are as it relates to Russian interference.
[Blitzer:] A lot of supporters of the president, though, feared that whatever they said could have contradicted some of the accusations that have been leveled by President Trump.
[Panetta:] Well, again, you know, the whole purpose here, I think what the American people expect is that we will find the truth. And that's the purpose of these investigations, the investigation by the Senate Intelligence Committee, by the FBI, and by the House Intelligence Committee, although clearly the House Intelligence Committee's investigation has some real credibility problems now, as a result of what Chairman Nunes did. But the whole point is to try to find the truth, find the facts and determine exactly what happened, not speculate, not listen to the statements that are coming out of all sides as we go through this investigation, but what are the facts, what is the evidence, and what is established in truth in terms of what happened here?
[Blitzer:] Mr. Secretary, we have a lot more to discuss. I want to take a quick break. We will resume all of this right after this quick commercial break.