Transcripts For KPIX 60 Minutes 20160502

Uber connects passengers with drivers. Need Financial Planning . Algorithms are replacing human advisors and brokers. Apps like venmo let people click money to each other, similar to texting. Many of the Innovative Services in Financial Technology that have come along in the past ten years are not coming from banks. Bill whitaker these are all your kids . These are all my kids. Whitaker thats right. They are all her kids. We are family whitaker india howell is mother to more than 90 children. And her Business Partner, peter leon massy, is the father. Its the biggest extended family we have ever seen. Youre the legal guardian for the children in the village . Yes, i am the legal guardian. India and i, we are two legal guardians. So she is mom and i am dad. Im steve kroft im leslie stahl im Anderson Cooper im Bill Whitaker im scott pelley those stories tonight on 60 minutes. Cbs money watch update, spofnsered by glor good evening. Freddie mac is expected to announce a big firstquarter loss on tuesday and may need another taxpayer bailout. Warren buffett says Berkshire Hathaways Railroad Business is on track for considerable losses this year. And today is College Decision day, the deadline for enrollment deposits. Im jeff glor, cbs news. Every Auto Insurance policy has a number. But not every Insurance Company understands the life behind it. Those who have served our nation. Have earned the very best service in return. Usaa. We know what it means to serve. Get an Auto Insurance quote and see why 92 of our members plan to stay for life. Anderson cooper during the most recent outbreak of the ebola virus, more than 500 Health Care Workers died of the disease, and something called personal protective equipment became essential to preventing the deaths of even more. Were talking about gowns, gloves, masks and other gear designed to block the transmission of deadly bacteria and viruses. Theyre used every day in hospitals to protect doctors, nurses, and patients. But ebola was so lethal, it raised the stakes enormously. If the protective equipment fails, infectious bodily fluids can get through a problem known as strikethrough. At the height of the Ebola Outbreak, we received a tip that a major american manufacturer had knowingly provided defective protective equipment to Health Care Workers in the u. S. And abroad. Its a serious accusation thats never been publicly examined until tonight. ambulance siren cooper if theres one thing that became evident during the Ebola Outbreak of 2014, its that personal protective equipment, properly used, could mean the difference between life and death. You probably remember the tragic images from west africa, and the workers in biohazard suits trying to help without getting infected themselves. May you help us to be a blessing to our patients. Cooper certain types of gowns were also used during the outbreak. The nurses at this hospital in liberia used gowns and fullbody suits to protect themselves after two of their top doctors died of the disease. Every day in the u. S. , doctors and nurses rely on some of the same gowns the centers for Disease Control recommended for ebola. One of them is the microcool surgical gown, made by Halyard Health, which sells about 13 million gowns a year worldwide, including a quarter of the u. S. Market. The microcool gown is supposed to provide the highest level of protection available against bloodborne bacteria and viruses. Its label says it meets a rigorous Industry Standard known as aami level four dr. Sherry wren alright, lets go cooper which means its impermeable, so that blood containing viruses like hepatitis and h. I. V. Wont get on surgeons skin during an operation. Theres just one problem. What was wrong with the level four gowns . Bernard vezeau they would leak. They would leak. When we pressure tested them, especially in the seams. Cooper Bernard Vezeau was the global Strategic Marketing director for microcool and other products from 2012 to early 2015. He worked for Halyard Health, which was part of the Kimberly Clark corporation until november 2014. When two nurses at a dallas hospital became infected after caring for a patient with ebola, vezeau says he was relieved the nurses hadnt been using microcool gowns, but he was concerned by the way the company went into high gear to sell the product. These gowns were being recommended for use with ebola. Vezeau aggressively being recommended. Cooper in what way aggressively . Vezeau we put a full court press to drive microcool sales. We told hospitals to stock up on our microcool products. We told them to have at least eight to 12 weeks of product on hand. And thats when things became very difficult for me. Cooper difficult because vezeau says he knew the gowns were not consistently meeting Industry Standards. Theres a test for this, right . Vezeau there is a test. And its conducted in outside facilities. Cooper so did your gowns consistently pass this test . Vezeau no, they did not. Cooper was the f. D. A. Aware of this . Were they notified . Vezeau no, not that im aware of. Cooper were customers warned . Vezeau no. Customers were not warned either. Cooper why not . Vezeau well, because kimberlyclark knew that if they they told customers, it would cost us a lot of business. Michael avenatti they didnt tell the public. They didnt tell the f. D. A. They didnt tell physicians. They told no one. They kept selling the gown to the tune of millions of dollars every month. Cooper Michael Avenatti is a California Attorney who represents hospitals that are suing Halyard Health and Kimberly Clark for fraud. He showed us this report by an independent, Certified Laboratory that tested the sleeves of microcool gowns in december 2012 at the request of one of Kimberly Clarks competitors, cardinal health. Avenatti at the time cardinal and kimberlyclark were in litigation against one another. And cardinal had these gowns tested and, in fact the results were disastrous for Kimberly Clark. Cooper what do you mean, disastrous . Avenatti well, if you look through the report, youll see that 77 of the gowns that were tested failed. Cooper 77 . Avenatti 77 . Cooper at hospitals like u. F. Health in jacksonville, florida, we found surgeons who told us they repeatedly experienced strikethrough, with blood getting through their gowns and onto their skin. Some surgeons were so upset about it they took pictures of their bloody arms and gowns and sent them to the company. Did you receive complaints from nurses, from surgeons at all . Vezeau on these gowns . Cooper yeah. Vezeau oh, frequently. On a very frequent basis. Cooper what kind of complaints . Vezeau oh, complaints of strikethrough, sleeves falling off, ties falling off. Cooper sleeves falling off. Vezeau sleeves falling off. Sleeves falling off during a procedure. Cooper were you at meetings where these problems were discussed . Vezeau every time. We were the ones who were telling Senior Management the problems that we were having. Cooper and what was their response . Vezeau well, its i remember the response one time from the c. O. O was, nobody really cares about this. Nobody really cares about surgical gowns. Chris lowery yeah, that thats thats just not true. Cooper chris lowery is the c. O. O. Vezeau was talking about, the chief operating officer of Halyard Health. Did you sell protective equipment for ebola that you knew was defective . Lowery no. And frankly, i i i think the allegations arent based in the facts. Cooper youre saying theyre completely false . Lowery yes. We get less than one complaint for every million gowns sold. And even more so is weve never received even one report of a Health Care Professional contracting an infection as a result of a flaw in our product. Cooper lowery says Bernard Vezeau didnt raise his concerns until after he left the company; vezeau says he was fired because he was vocal about the problems. The company also questions the motives of this man, keith edgett, the former head of research and engineering for the gowns. In this video deposition, edgett expresses the same concerns as vezeau about what was going on at the company. Keith edgett i believe that they were putting customers in harms way, and i was struggling with that. Cooper i want to show you the the results of a test performed by intertek labs. It shows that 77 of your microcool gowns failed one or both of the sleeves. Lowery yeah. Cooper 77 is a lot. Lowery anderson, its its its very important to put this this cardinal test data into context. First extreme outlier test results. We had never seen test data that reflected anything like this before, or for that matter since. Cooper halyard showed us its own test results from independent laboratories. The reports show the sleeves passed some of the time, and failed at others, but chris lowry says they passed far more than they failed, and when they failed it was at much lower rates than the cardinal test suggests. For the test in february 13, 18 out of 85 samples fail. Thats 21 . Lowery we have to look at a test failure in the context of all the tests that are passing. Cooper but you you have failures in the product. Youre still selling the product. And you dont inform the f. D. A. And youre not informing customers . Lowery it it its its important to understand that the no manufacturing process is perfect. You take that into cooper but these failures were above the Industry Standard. Youre allowed a certain amount of failures. When you actually fail a test, though, thats above the failure rate thats already built in. Lowery and and in the testing that we completed after the cardinal testing, we we believe that we were fully compliant with our requirements for the product as it had been cleared. Avenatti is that what he told you . Cooper yeah. Avenatti evidently he forgot the 11th commandment. Cooper which is . Avenatti do not lie to 60 minutes. Cooper the company had shown us this march 2013 lab report as part of its proof the gowns passed the test. But attorney Michael Avenatti says thats not what really happened. Avenatti they claim to have submitted 79 samples and 75 passed. Cooper they said they passed, yeah. Avenatti well, they didnt pass; they failed because they didnt submit 79 samples. They submitted 85 samples and, in fact, six of the samples werent even tested because the sleeves were so bad. The lab took them out of the package and they were so bad that they didnt even test them. Because it was obvious what was going to happen. Cooper and they didnt include that in as failures . Avenatti no, they didnt. And, in fact i mean, i brought the document that shows it. Its a spread sheet prepared internally at kimberlyclark. Cooper six failed, not tested due to unsealed seams. Lot fails. Youre saying this is an example of fuzzy math . Avenatti no, this isnt fuzzy math; this is fraud. Cooper when we asked halyard about this, the company acknowledged it had not told us about those untested samples but denied it was trying to deceive us. The company says even if a sleeve seam fails, the risk of a doctor or nurse getting infected is extremely low. Lowery they would have to have some type of cut that would allow transmission. The defect would have to be in that exact place. The surgeon would have not covered the cut or abrasion as they should have per their procedure. Theres so many factors that have to align for that to occur. Dr. Sherry wren i think its really easy for him to say that. But hes not the guy doing it. Cooper dr. Sherry wren is a vice chair of surgery at Stanford University school of medicine. Wren the bottom line is, is he going to stand there and volunteer to let me paint some hepatitis c blood on his arms and on his stomach . Probably not is going to be my guess. Cooper and youve had hepatitis c blood on your arms and on your stomach . Wren of course. Cooper dr. Wren specializes in gastrointestinal surgery, and is coauthor of guidelines for surgeons operating on patients with ebola. She has no connection to the lawsuit against halyard, but she does wear microcool gowns for procedures like this one, in which she knew the person she was operating on had hepatitis c. Shortly after we recorded this surgery, dr. Wren told us she got blood on her arms and hands three times, while wearing three different microcool gowns and operating on another patient who also had hepatitis c. Weve been told that as long as your skin is intact, youre okay. Wren actually with that case i finished operating at 5 00 in the morning and i looked down at my hand. And i realized i had eroded off a callus. So i had ripped my own skin in the o. R. Cooper it does matter then to you that these gowns are impervious . Wren yes. Of course it matters. Do i really want to have somebody elses infected bodily fluids on my body . No, i do not. Cooper internal documents we obtained suggest the company knew for a long time that it had a problem. Which is why we wanted to ask the c. O. O. Chris lowery about this november 2014 Powerpoint Presentation that identifies a yearandahalf gap in sleeve seams passing the industry test. Weve been told that in november of 2014, a timeline was presented. And your own people acknowledged that there was a year and a half period in which the sleeve seams didnt pass the test, which demonstrates the gown is impervious. Is that true . Lowery its not. Cooper this is the presentation and on the second page it says lowery yeah. Cooper gap in sleeve seams passing astm 1671. And it shows a year and a half gap. Lowery yeah, anderson, if if if its okay, ive not seen this presentation, to my recollection. And and so i dont think that its appropriate, particularly out of any context, to to react to it. Cooper do you think stuff like this happens lowery i i think and anderson, probably from a time perspective, if you dont mind cooper you want to stop . Lowery yeah, i mean, i think that we probably i think weve spent the time that we agreed to. And team . Cooper after our interview, halyard told us it was not required to meet new more stringent testing criteria during that gap shown on the timeline. By january 2015, the company says it had new sealing machines in place to improve the quality of its sleeves. But before the new machines were up and running, the company sold thousands of microcool gowns to the cdcs Strategic National stockpile of medical supplies, for use in future outbreaks and emergencies. The Governments National institute for Occupational Safety and health is conducting research on protective equipment. When it commissioned tests of gowns produced in 2014 for the stockpile, there were some sleeve failures in three out of four batches tested. Are federal or state authorities looking into this at all . Avenatti i cant comment on that. They certainly should be because forget about the civil liability this is criminal conduct. Cooper in its most recent annual report, Halyard Health said it had been served with a subpoena that is related to a United States department of justice investigation. The Justice Department and the food and drug administration, which regulates medical devices, declined to comment further. The companys said to us basically, theres no evidence that anybody got sick or or died directly related to a failure of any gowns. If it was so egregious wouldnt there be many cases or even one clear case that you could point to that says, look, there was this failure of a gown and this doctor became infected with ebola or hiv or any other disease . Avenatti until now why would any doctor or nurse have any reason to question Kimberly Clarks representations regarding the effectiveness of this gown. This story may, in fact, be the first time that physicians and nurses who have contracted disease take a step back and say, you know, maybe thats how i got it. This cbs sports update is brought to you by ford. At the zurich classic, thirdround play was suspended at 11 09 and never resumed. Play continues tomorrow weather permitting. Right now brian stuart and Jonathan Vega share the lead at 13 under. Charlotte won the series 43 and will now play the winner of the indianacolorado series game seven tonight. The trailblazers take a 10 series lead. For more sports news and series lead. 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Try new rhinocort® allergy spray. Muddle no more® leslie stahl one sector of our economy after the next is being disrupted by new apps and websites, like book stores, travel agents, taxis, hotels. Tonight, were going to explore whether the Banking Industry is next on the list. Thousands of startups are challenging many aspects of banking. The newcomers argue that this important sector is too set in its ways. Its being called the Financial Technology, or fintech, revolution. We looked at the birth of one Fintech Company founded by two young fintechies who started not unlike the founders of facebook and microsoft. Which one of you dropped out of harvard . John collison that was me. Stahl and which one of you dropped out of m. I. T. . John collison by elimination Patrick Collison right, i was the other one. Stahl brothers patrick and John Collison quit college because they had an idea for modernizing the financial industry they thought needed a shaking up. Patrick collison in a world where people can send a facebook message or sort of upload an Instagram Photo and have it available to anyone anywhere in the world like that, i think the fact that that doesnt work for money is something that seems kind of increasingly, honestly, unacceptable to people. And so, i think the question for banks is just can they get there first in providing these services . Or will it be somebody new . Stahl they want to be the somebody new. John, 25, and patrick, 27, first noticed the problem when they were in high school in dromineer, a dot of a town in ireland. And you were coders . John collison yeah, we had both learned to program growing up, and we had been building iphone apps, we had been building web services. Stahl but when they wanted to charge people to buy the apps they hit an unexpected snag they had to go to the bank and file paperwork just to be able to collect the money. Patrick collison like really sort of kind of like getting a mortgage. You would have to, like, convince them that you were worth supporting John Collison and like a mortgage, it would have to be approved. Patrick collison right, exactly. And it would take sort of weeks for this approval process to happen. And it just seemed sort of like this crazy mismatch. Stahl so they decided to do something about it. They created software that allows businesses to cut through all that bureaucracy and instantly accept payments online from countries across the globe. We visited their startup, stripe, in the mission district, the heart of san franciscos tech scene, where patrick showed me how fast a business could set up a moneycollection system using stripe. Set me up pretend i left 60 minutes to create an online business. Patrick collison what do you want to sell . Stahl i think im going to sell dog food. Homemade dog food. In five minutes, after a few clicks and a cut and paste of their code, he said my company would be ready to receive payment for homemade dog food online, right then and there. Patrick collison it doesnt need to take any longer. This is how it should work. Stahl and this is what would take weeks and weeks and weeks and forms and forms and verification and Patrick Collison and going to the bank branch and waiting for paperwork to be mailed back to you and all this stuff. Stahl they developed software for buy buttons, letting companies accept payments online fast and in new ways. Stripe charges sellers a small percentage for every transaction. Does the buyer pay anything . Patrick collison the buyer pays nothing. Stahl nothing . Patrick collison correct. Stahl their goal is to make money as easy to send as email. For everyone, anywhere, on any device. Patrick collison we want to free businesses from just selling via credit cards, you know, to people who hold bank accounts, and instead, enable people to Purchase Online no matter what it is that they use, bank account or no. Stahl and of course this needed the smart phone, it needed this move to mobile. Patrick collison for sure. Stahl stripe is hardly alone in inventing new Financial Technology or fintech. Theres a revolution brewing with thousands of these companies trying to make banking faster and cheaper and increasingly mobile. John collison many of the Innovative Services in Financial Technology that have come along in the past ten years are not coming from banks. Stahl but by and large, the newcomers are not challenging the core function of banks taking deposits. Even the startups themselves park the money they handle at f. D. I. C. Insured banks. Patrick collison i think therell always be a need for sort of somewhere to store your money, to have it sit. And we think, you know, for all their flaws, they have a lot of experience at being banks, right . Stahl but fintech is targeting nearly all the other functions of banking. The startups are peeling off one Profitable Service after another, typically offering them for less. Its called unbundling the banks. Say you need a loan. Fintech sites match borrowers and lenders directly the way uber connects passengers with drivers. Need Financial Planning . Algorithms are replacing human advisers and brokers. Apps, like venmo, let people click money to each other similar to texting. And if you want to wire money across borders taavet im sending 500. Stahl the c. E. O. Of a Company Called transferwise showed us how his app can send money abroad and convert currencies, say dollars into pounds, without bank tellers and High Exchange rates. Users just swap with each other. And a couple of clicks and, boom. Taavet click, click, done. Stahl do you think that the big banks today see these fintech startups as the barbarians at the gate . Vikram pandit well, theres certainly a lot of curiosity. Stahl what about fear . Pandit there can be some fear. Stahl vikram pandit, the former c. E. O. Of banking giant citigroup, says its the all toofamiliar tale of david and goliath. Pandit a lot of what youre seeing in fintech is like what youre seeing with uber or airbnb. I mean, youve seen the impact of technology on travel or retailing stahl yeah, the travel agents are were thrown out of business, thats what i saw. Is that what fintech is doing to banking . Pandit its early days. And you know, banks are thinking about it, and theyre trying to understand what all this new technology can mean. Stahl it could mean trouble with millennials willing to ditch brand Name Companies for new apps on their phone. Max levchin the banks have not realized how different this generation is. Stahl max levchin, who co founded paypal and was an early investor in stripe, cites a survey saying 70 of young adults would rather go to the dentist than to a bank. Levchin they dont really have a problem putting their Social Security number into a web form, but they have a terrible problem going up to a teller in a bank, and trying to figure out what exactly youre supposed to do. This is so inefficient. Why am i in this stogy, outdated room that is empty and marble laden . Stahl and its not just about technology. Theres also a question of trust. The millennials, their basically formative experience is the financial crisis. Theyre the ones who really dont trust the banks. Pandit and we know that many banks served their own interests more than those of their consumers. Stahl youre criticizing a system, basically, that you helped create. Pandit well, theres no question the crisis demonstrated that the system didnt work. And when you looked at the aftermath of the crisis, what needed to be done. You had to make sure banks got back to the basics of banking, and that they had to address the trust issue. Stahl but in the meantime fintech started taking root. In the last year and a half, investors have poured over 20 billion into the sector, including this banking insider whos personally invested in a dozen fintech startups. He says that beyond making banking more convenient, these companies can offer options to lowerincome families that cant afford to bank at banks; ten million american households dont even have a bank account. You know, ive read that it is more expensive for a poor person to use the Banking System as it exists than for a wealthy person. How is that possible . Pandit there are Bank Account Fees on your checking accounts. There are commissions, there are exchange rates. It all adds up. Stahl and that doesnt happen with the new companies . Pandit the new companies, theyre transparent and they tell you what the fees are. And they are fraction of some of the fees that are charged by banks. John collison as services move onto the internet, they can provide the services more cheaply. And you know many of these banks, they have hundreds of thousands of employees. Whereas as we see Financial Services moving online, they dont have to have a physical presence and pay for that. So you can eliminate hidden fees if your cost structure is lower. Stahl and im hearing eliminate jobs. I mean were talking about hundreds of thousands of jobs in the banking sector. Tellers and, you know, financial advisors, you name it. Patrick collison i think in general technology always sort of makes some jobs less relevant, or perhaps, even obsolete, but i will say that the idea that sort of these people will find nothing else to do seems like its way too pessimistic on the capabilities of everyone as human beings, right . These stahl have you looked at the employment scene right now . Patrick collison i think itll take a while to adjust. But when you think about just the creativity of people and what theyre capable of and the sort of aspirations and dreams that they have, the idea that theyre not capable of anything more than sort of performing these automatable clerical tasks, i dont believe that for a second. Stahl there are issues with fintech that go beyond the loss of banking jobs. Letting these new companies handle your money could be risky because there are concerns theyre inadequately regulated. And theres also the issue of online security. So why should we trust you . You think no hacker could ever get in there . John collison i think weve had the best opportunity to sort of design a secure system, right . Stahl but youre still on the internet. Patrick collison right. Stahl you are still operating on a base thats not secure. Patrick collison i think youre right in the sense that people have been trying to steal money for as long as money has existed and, the best we can sort of as a society hope to do is to sort of design security in the most thoughtful and sort of robust way possible. And thats what we set out to do with stripe. Stahl and its not like the big banks havent been breached by hackers. So is fintech the next uber . Well, its still a small slice of the financial industry. And the powerful and rich old guard is fighting back, its lobby already pushing for more regulation to curb the newcomers; and scrambling to adapt big banks have begun increasingly investing in and partnering with fintech, some looking at a technology called blockchain thats behind Digital Currencies like bitcoin. Patrick collison i think its kind of human nature to always want to see these things as a competitive dynamic, that either Technology Companies have to win or the banks have to win and one of them is going to lose. John collison its not as black and white. Patrick collison yeah. Stahl do you think what you have can be brought to a bank like wells fargo or j. P. Morgan chase . Can they integrate this or its either one or the other . Patrick collison i think they can be part of it, they can be part of sort of the infrastructure that powers it. And, again, we work with wells fargo and many other banks today. But i think that they can only be part of it. They cant be sort of the agents driving it forward. Stahl he says that over one in four americans online have used stripe in the last year, including on sites like facebook and twitter, and Department Stores like saks and macys. The software is embedded on both apple pay and android pay, and its already helped hundreds of thousands of businesses accept money online. Patrick collison there you go stahl oh even though stripe has some stiff competition, like paypal, the brothers have made two covers of forbes and the four yearold company is now valued at 5 billion. Not bad for two brothers who not long ago had to beg their bank branch for approval. John collison when you have a major technological shift like this, its not clear that automatically, the existing financial players are the ones who are going to win. Stahl even though theyre huge and powerful. John collison i mean, there were plenty of huge retailers before amazon, but somehow, this little, you know, upstart from seattle you know, in just a few short years, gobbled gobbled up the business. Stahl banks are so rich. Do you worry that they are going to come and buy you out . Patrick collison well, luckily we have a say in that. And we want to build a longterm independent company. Stahl oh you want to buy them out. laughter when the check arrives, your average henry reaches for venmo. 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But only if you have a brain. music fades out ,, Bill Whitaker tanzania is an east african country of staggering beauty and devastating poverty. Half the population of 51 million is under the age of 14, many of them orphaned, abandoned or abused. For the last ten years, in a remote northern corner of the country, hundreds of children in need of care have found refuge and protection in a mountainside oasis called the rift valley childrens village. Its not just a safe haven, its their home. Its run by an American Woman, india howell, and peter leon mmassy, her tanzanian Business Partner. Theyre like the odd couple; shes impatient and blunt, hes cool and diplomatic. Together they are parents to 94 children and counting, the biggest extended family weve ever seen. When we heard of this extraordinary place, we had to go see for ourselves. Tanzania attracts about a million tourists a year, and this is one of the reasons why. The ngorongoro crater, where the wildlife is so abundant, so diverse, you almost cant believe your eyes. Just over the ridge of this magnificent place lies our destination, and its not easy to get there. After a day on planes, almost four hours of driving the last 40 minutes on rutted dirt roads under sprawling acacia trees, through coffee plantations and past villages, called camps, where the plantation workers live we entered the gates of the rift valley childrens village and into another world. Hi, Bill Whitaker from the beginning, you called this the rift valley childrens village . India howell yes. Whitaker not an orphanage . Why . Howell because my kids arent orphans. Theyre not up for adoption. They never have been and never will be because theyre home now. Whitaker india howell runs this home really a group of houses with her Business Partner and managing director, peter leon mmassy. Youre the legal guardian for the children in the village . Peter leon mmassy yes. I am the legal guardian. India and i, we are, i mean, two legal guardians, so she is mom, and im dad. Whitaker they call you mama . Howell they call me mama, and then after theyve watched enough disney movies, they start calling me mom, laughs . Whitaker had you wanted to be a mom, have your own kids . Howell believe it or not, i dont think i was issued with the biological clock. As all of my friends became more frantic and started to marry people they would later divorce because they just wanted to have kids, i couldnt understand that drive. And here i am with more children than i can count. And i cant imagine any other way. Whitaker these are all your kids . Howell these are all my kids. Whitaker so what do the kids get here . Mmassy i can ask you the same thing, i mean about your home. What do your kids get . So its everything. laughs when the kids come here its this is home. Howell you got to do a better job, this is really gross. Whitaker the rift valley childrens village is located near the town of karatu, on nine acres of land donated by local villagers, with 90 employees, including social workers, counselors and support staff peppered throughout the year with many volunteers. There are 22 buildings, a third of which are the childrens houses. Each house has two deputy moms called mamas all tanzanian. The children here range from toddler to 21. Howell let me get you a bag for the shoes. Whitaker they get food, clothing shelter, education. Howell shh, shh, shh, its okay. Whitaker and love. Like most large families, the kids have regular routines. Howell everybody awake . Whitaker theyre up at dawn, get ready for school, and sit down for breakfast. We are family whitaker theres snack time, play time, and like it or not, for bobo and esau and everyone else bath time. Establishing traditions is a big deal here, right down to birthday celebrations. Happy birthday to you. Whitaker it might not be the exact date, but for a little boy like eliasi, its his day. Every child who ends up with india and peter has a story, some more poignant than others. It seems that most of the children have lost their parents or were living with relatives. And just some of the descriptions we came across here frightened and angry, mistreated emotionally and physically. Howell yeah. Oh, this sweet, little girl. She witnessed her father beat her mother to death, and was probably three or four years old. So old enough to see what was happening, but by no means old enough to have the to be able to emotionally process that. Then moved in with relatives where she was being sold. She was being prostituted out. Whitaker what india and peter have undertaken is no easy feat. And it all started with a trip india took to tanzania in 1998, which had nothing to do with children. How did you end up here in northern tanzania . Howell my mother asked the same question many times; quite by accident, actually. I agreed to go climb kilimanjaro with one of my best friends for her 40th birthday. I had no interest in africa whatsoever, but stepped off the plane and knew that i was home. Whitaker the feeling was so strong that after the climb, india went back to the u. S. , quit her job and applied for one with a Safari Company. She was hired and within three months was back in tanzania. Why did you choose this area . Peter, who grew up in poverty, but managed to make it through high school, was working to earn money for college at a Safari Company. India became his boss. What did you think of her . Mmassy it was my first time to work under i mean, a woman boss, and an American Woman boss. I was really impressed. And, she was smart, and she had this sense of humor, and but tough lady. Whitaker this tough lady grew up in an exclusive enclave on the north shore of long island, new york and was c. E. O. Of a business in boston, a world away from tanzania. So, you came here to work for a Safari Company . Howell right. Whitaker and end up founding a childrens village. Howell right, that seems like a big jump, but actually, theres a thread. So, part of my job required that i go to the city of arusha every week and every time you got out of the car you were just swarmed with all these ragged little boys, who, i soon discovered, were what we call Street Children here. And my mission from the beginning was to identify these kids that are living at risk before theyre driven to the streets. Whitaker so how did you find out that you both had this interest, in helping needy children . Mmassy i wrote a proposal, very small proposal, about my home village. And i showed it to india. I said, ins, this is im really thinking that i want to do this. Whitaker the proposal suggested that through environmental conservation, a community can not only sustain itself but more importantly enable children to thrive. Howell he said, you know, ive written a business plan. I said, oh, i would love to see it. Whitaker what did you think of this plan when you saw it . Was it howell i thought it was brilliant. Whitaker this is realistic . Howell i thought it w hm . Whitaker did you think it was realistic . Howell im very practical in my no matter what idea comes to me, my first thought is, and where does the money come from . Because it doesnt matter if its a good idea if you cant pay for it and sustain it. Whitaker so peters proposal was all but forgotten. Then this happened one of indias employees at the safari lodge told her he was not only quitting his job but abandoning his threeyear old son, named doctor. Just like that, india was thrust into motherhood. Howell theres this little peanut in a shuka, which is the fabric that the maasai wear. And we just looked at each other. And it it was like wed been looking for each other forever, and we finally found each other and he just ran into my arms and i was sunk for life. Whitaker riziki, also abandoned by her birth parents, followed doctor, then came juma and india named after her new mom. Now a fulltime mother of four, india decided to leave the city of arusha and the safari business and move to the countryside, where she rented a house on an old coffee plantation. So we had a swing right here. Whitaker word got out there was a lady taking in children. Over the course of four years, village and Church Leaders and relatives started dropping off abandoned and abused children some orphaned by aids. The family grew to 17 kids. Peter, in the meantime got his degree, became managing director and married his college sweetheart, grace. They now have three daughters of their own. That house was where peter lived. Whitaker doctor, the first child she took in, is now 19. Doctor there was something that mom was showing that my family didnt have where it was love, care that came first before anything else. Whitaker riziki is 21. Raziki lemomo laizer at first, i was so much afraid of her. Whitaker why . Laizer when were little kids, i mean, they just tell us, like, the white people are bad people. And when i saw her, at first i was, like, terrified. Whitaker actually terrified . Laizer uhhuh. But as time went by, i mean i got used to her and i wasnt afraid anymore. Whitaker now you love her . Laizer very much, i do. Mika . How did we get mikas shirt . Whitaker as it turns out, giving kids a place to live is the easy part. Howell i thought i had it all figured out. I you know, they can go to the local public school. And i realize this school isnt a school by my definition. Whitaker so india and peter convinced the local elders to let them take over the administration of a primary school. This is what the Elementary School looked like before. This is what it looks like today. bell ringing peter and india now run two schools primary and secondary for their kids and almost 700 local children, like james and his friends who trek five miles every day to get here. The kids are taught in swahili and english, and they have the best scores and Graduation Rates in the region. Even so, to accomplish anything india has had to overcome tanzanians skepticism. Locals have seen western good intentions come and go before. I know youve heard the criticism of the the white woman, the white american, rushing in to save the tanzanians. How do you how do you howell yes. Whitaker respond to that . Howell i smile and nod. It its its very sweet and naiive that people think that it could be that easy. Whitaker her american assertiveness often clashes with the local culture. So peter has the added title of diplomat he smoothes tensions between india and the community. You guys make a good team. Mmassy we are making a very good team, and she drives me nuts. But i love that. Howell if it werent for peter, i wouldve been deported, because hes always explaining me. He gets the American Culture but he most importantly, gets what is needed here, and how to translate all of the different ideas into something workable. If youre happy and you know it whitaker the rift valley childrens village runs on an annual budget of 1. 3 million with the help of various Family Foundations and generous donors. We are actually showing not just our village. Whitaker still, india travels twice a year to the u. S. To raise money. Beyond the childrens village, half of the budget pays for local schools, a Microfinance Program with 500 clients. How long has she had it . Whitaker and a Health Clinic that serves 8,000 people. Are you surprised by the success of the childrens village . I mean, i know this was your dream long ago. But look at what youve brought about. Are you surprised . Mmassy im amazed. Im astonished. I every single day, i live i wake up, im, like, wow. Did we really do all of this . After 51 days of the pursuit of four bandits who chose a prius as their getaway car, a new development prius owners from all over america have descended on the chase hi to play what appears to be an automotive shell game with authorities. Its total confusion down here. The prius 4 have literally vanished. Theyre just gone. [laughing] i dont think anyone could have predicted this. Toyota. Lets go places. This is lloyd. To prove to you that the better choice for him is aleve. Hes agreed to give it up. Ok, but i have 30 acres to cover by sundown. Well be with him all day as he goes back to taking tylenol. Yeah, i was ok, but after lunch my knee started hurting again so. More pills. Yep. Another pill stop. Can i get my aleve back yet . For my pain. I want my aleve. Get all day minor arthritis pain relief with an easy open cap. My wife and i are now participating in your mutual fund. We invested in your fund to help us pay for a College Education for our son. Weve enclosed a picture of our son so that you can get a sense there are real people out here trusting you with their hardearned money. At fidelity, we dont just manage money, we manage peoples money. Bill whitaker im Bill Whitaker. Well be back next week with another edition of 60 minutes. Tomorrow, be sure to watch cbs this morning. Previously on madam secretary. Were in therapy so we can work through it. Were in therapy because i cant accept what happened to dmitri, and whats still happening to his sister. Admiral parker images show the i8 district of islamabad, where jibral disah is said to be sheltered, to be a highly exposed residential area. Dalton well give murphy station a diplomatic cover. 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