All-Star Panel: Did administration 'deceive' public after Libya attack?

This is a rush transcript from "Special Report," September 27, 2012. This copy may not be in its final form and may be updated.

BRET BAIER, ANCHOR: Well, we can talk about the campaign many, many times. We only have a little bit left. I thought we'd continue this discussion. Charles, you want to talk about the investigation.

CHARLES KRAUTHAMMER, SYNDICATED COLUMNIST: Yeah. There are two parts of this deception and the first has to do with the fact that they pretended that it was a demonstration. And Obama actually carried it on with a speech he gave at United Nations just three days ago. He spoke endlessly about the video. He denounced it at least seven times, as if that is what the issue is here.

But the other half of this deception is every time they've been asked a question about what happened on the ground and the lack of intelligence and security and preparation, they deflect it and say we can't answer because there is an ongoing inquiry. And now we learn there isn't even anybody FBI on the ground, who is supposed to be conducting the inquiry. So I think at every level this administration then wanted the suppression of the story because it went completely against its storyline of the great success it had against Al Qaeda.

BAIER: Judge, this other part of the story, the two Navy SEALs were killed at the annex, this is a half-mile away from the consulate. There were intelligence assets on the ground, according to U.S. officials, that were tracking these Al Qaeda affiliates. They were trying to keep track of RPGs and surface to air missiles and weapons of mass destruction possibly on the ground in Libya. They knew that Al Qaeda was growing in strength on the ground in Libya, these people who were on the ground.

JUDGE ANDREW NAPOLITANO, FOX NEWS SENIOR JUDICIAL ANALYST: You know, with -- the president doesn't speak about this, if General Petraeus who heads the CIA materially misleads a congressional committee in private, this is the emperor having no clothes. As Charles said, the administration will never conduct an investigation the results of which we'll know before Election Day because the administration cannot now admit that its policies over there have been a failure. It got rid of a bad guy, a strong man, it replaced him with people worse than he is, with mob rule who will kill our people and destroy our assets even though we ought to have known they were there and they were coming. The administration's behavior here is criminally negligent.

BAIER: And if you look back, Juan, at all of the statements and all of the focus of the media after 9/11 -- how it was all focused on Mitt Romney's statement about the Cairo embassy and what he said about that for two days. It kind of puts it in a different perspective after you learn that perhaps the administration knew it was a terrorist attack from the beginning.

JUAN WILLIAMS, SENIOR EDITOR, THE HILL: Knew it was a terrorist attack in Libya. Now we have other countries at play, obviously, and in Egypt and other countries. The video may have had some role to play and may have been used to stir resentment and anger for political purposes to repress moderates. But we should separate those two out.

But I just want to come back to what you were talking about, that safe house. That is a big story. And I wonder if the administration and our intelligence folks are trying to slow down what the world knows about what was going on there.

BAIER: We will continue to follow it. That is it for panel. But stay tuned for more from the U.N. General Assembly.

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