This is a rush transcript from "Your World With Neil Cavuto," September 29, 2010. This copy may not be in its final form and may be updated.

NEIL CAVUTO, HOST: To California. First, the debate, now the smears? Republican gubernatorial candidate Meg Whitman sitting down with us in her first live interview following Tuesday's big debate with Jerry Brown, and is going to be responding to the controversial allegations made just an hour or so ago by a former housekeeper.

First on Fox, Meg Whitman right now.

Meg, very good to have you.

Thank you for coming.

GUBERNATORIAL CANDIDATE MEG WHITMAN, R-CALIF.: Hey, Neil. How are you?

CAVUTO: I'm very fine.

By the way, we did put out a call to your opponent, Jerry Brown. He's been on the show before. I always hope he will show up. Nevertheless, the -- the invite is out there, and I hope the -- the former governor takes us up on it.

In the meantime, Meg, to what this former housekeeper charges, do you want to respond to it?

WHITMAN: It's simply a lie.

And I feel terrible for Nicky. Nicky is a wonderful individual. She was an extended part of our family for nine years. And something has happened. She is being manipulated. This is a political gimmick, you know, led by Gloria Allred, who is famous for this kind of stuff. It's bad -- you know, it's just politics as usual.

And it's a real shame, because poor Nicky, I think -- you know, I just feel terrible for her. So, anyway, it's all not true. And -- but it's just politics as usual.

CAVUTO: Now, be that as it may, you know, these stories take on a life of their own. She claims you knew pretty much from the outset that she was an illegal alien, she was a housekeeper, a nanny, whatever, to you for the better part of nine years.

Is it true that at -- during any of that time, you suspected that she was not a legal citizen of this country?

WHITMAN: Absolute -- no, absolutely not. We used an employment agency to find Nicky. She filled out a 1099, showed a California driver's license. Everything was in order.

We specified with the employment agent we wanted to make sure we had someone who was here legally to work in the United States. And no one was more surprised when she came to me in June of 2009 and admitted that she was here illegally and had forged the documents.

So, you know...

CAVUTO: And at that...

WHITMAN: ... but we did...

CAVUTO: ... at that point...

WHITMAN: ... what we had to do.

CAVUTO: At that point -- I'm sorry.

At that point, you said, I'm sorry, I'm going to have to let you go?

WHITMAN: Yes.

I mean, we said, gosh, Nicky, I am terribly sorry, but -- but we would be breaking the law if we kept you in our employment and so we have to let you go.

So, that Saturday, she came to our house to tell us that she was not here legally, and she never came back to work, because it was just, you know, not the right thing to do to keep her in our employ.

So, you know, I feel bad -- as I said, I feel terrible for Nicky. But, you know, we had no idea that she was not here legally.

CAVUTO: What did she say at the time when you let her go?

WHITMAN: She said: "I'm so sorry. You know, I'm so sorry. You know, I love your family. And, you know, I have worked for you for nine years and I'm so sorry."

CAVUTO: And what did you make of the timing of this announcement, Gloria Allred and all, today?

WHITMAN: It's -- it's clearly politically motivated. We had a great debate last night. I think I did very, very well.

No surprise, this morning, Gloria Allred pops up with a political stunt. I think it's just, you know, politics as usual.

CAVUTO: Let's talk a little bit about that debate and what's happened since, this incident notwithstanding, because these things are, you know, hard to verify one way or the other. But I did want to get your views on it, Meg.

But Governor Brown has been saying that putting you and...

WHITMAN: You know, Neil?

CAVUTO: Go ahead.

WHITMAN: Let me just say something.

It -- Neil, it's actually not hard to verify. We have all the documentation. We've put it out there. This is a black-and-white case. So, it's...

CAVUTO: When you say you have...