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GIBSON: A campus controversy with a twist of terror heating up the Sunshine State. The University of South Florida wants to fire an outspoken Palestinian professor claiming he is tied to terror. Sami Al-Arian, who has been in this country since 1975 and has tenure as a professor of computer engineering, says the university is violating his right to free speech.

Today, University President Judy Genshaft announced plans to ask a court if she can go ahead and fire the guy.

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JUDY GENSHAFT, USF PRESIDENT: I believe that Dr. Al-Arian has abused his position at the university and is using academic freedom as a shield to cover improper activities.

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GIBSON: Joining us now in Tampa, Florida, former federal prosecutor John Loftus. He's been working to expose terrorist networks in Florida and has sued Al-Arian.

So, John, I guess I'll just ask the lawyer in you. This is kind of an unusual procedure when the university goes to the court and says, "In advance, please give us an OK to fire this guy." Why would they be so worried?

JOHN LOFTUS, FORMER FEDERAL PROSECUTOR: Well, I think a lot of it is fear of retaliation from the academic community. Florida doesn't want to have the stigma of violating a professor's academic freedom. So they're asking for a judge to bless their decision.

They're doing something else, too. They've broadened the charges against Al-Arian from not merely campus disorder, they're including his role as a terrorist leader, and that's a first.

That's the real issue here. It's not a free-speech issue. It's a terrorist conduct issue.

GIBSON: OK. Now what are they alleging? And I know that you know quite a bit about him. So, separating what you would allege, what is the university alleging about him?

LOFTUS: The university says that they want a full investigation into his connections for terrorism. This week, we had the former head of CIA counterterrorism admit that Professor Al-Arian was not only a member of a terrorist group, he was a founder of the Palestinian Islamic Jihad, one of the most dangerous terrorist organizations in the world.

GIBSON: And you've been trying to leverage this admission out of this guy for quite a while.

LOFTUS: Yeah. I wrote to Mr. Cannistraro on July 3rd saying, "Look, here's a detailed list of all the files at CIA, NSA, and FBI that show that Sami Al-Arian is a member of the terrorist organization, and he admitted to me that he was and said, "But I've never denied Professor Al-Arian's affiliation with a terrorist group."

That may come as a shock to a lot of people in the news because Cannistraro was the big public defender of Al-Arian. In fact, Cannistraro's letter of support is up on Al-Arian's Web site. So now Cannistraro has testified under oath that he knows that Al-Arian is, in fact, a member of a terrorist group.

GIBSON: So, John, just...

LOFTUS: At the same time...

GIBSON: ... jumping ahead, if -- OK. These things are now known to be facts. So what happens to Al-Arian?

LOFTUS: Right now, he's suspended with pay. I think that's a -- he's got a great scheme. The real question is why are private citizens pursuing Al-Arian. Why isn't the government doing something?

It's just -- 12 years now, the FBI has been fighting a heroic battle to investigate Sami Al-Arian, has never gotten permission from the Justice Department to charge him with anything.

The only thing the Justice Department has done is to let all of the key witnesses out of the country. By the end of this week, every key witnesses against Sami Al-Arian will either have been deported or let go.

GIBSON: John Loftus...

LOFTUS: So this doesn't pass the odor test.

GIBSON: No, it doesn't.

John Loftus fighting the good fight.

Thanks, John. We appreciate it.

LOFTUS: Thank you.

GIBSON: One final note: We asked Al-Arian's lawyer to appear today on THE BIG STORY, but he is busy at this moment holding a news conference. We will update you on what he has to say later.

The Patriot Act gives our government lots of tools to fight terrorism, but one House committee wants to know exactly how the Justice Department is using this new power and may even subpoena the attorney general.

Fox News Senior Judicial Analyst Judge Andrew Napolitano is here to sort this one out.

And, by the way, this isn't Pat Leahy and Ted Kennedy and the -- and Tom Daschle.

JUDGE ANDREW NAPOLITANO, FOX SENIOR JUDICIAL ANALYST: No, no, no. This -- these are some of the attorney general's formerly strongest supporters on Capitol Hill.

GIBSON: Republicans.

NAPOLITANO: Republicans. Conservative Republicans who believe that government has certain limitations and that the Congress has certain oversight over the Justice Department and who want to know what you are doing with this money we're giving you and what are you doing with the powers we gave you.

GIBSON: Well, what is it that John Ashcroft isn't doing to the satisfaction of Republicans in Congress?

NAPOLITANO: He's is not telling Republicans in Congress what kind of surveillance the FBI is engaged in, what kind of groups it's monitoring, who he's declared, because he has the power under the Patriot Act to declare groups as terrorists, and who he's pursuing as supporters of those groups, and the Congress has, in its opinion, a right to know.

GIBSON: And why is Ashcroft not telling them these things?

NAPOLITANO: Well, that's the $64,000 question, and we may find out. He's been somewhat repentant because he really cannot afford to lose the support of conservative Republicans.

I suspect the reason he will say he doesn't want to tell them is why should the government tell the world who it's surveilling? You surveil someone hoping you will catch them as they're about to commit a crime. You don't tell them you're watching them.

GIBSON: Isn't there some mechanism for him to inform the Congress or those congressional leaders that need to know without telling the world?

NAPOLITANO: There he is. He has frustrated even that by refusing to answer some of their letters.

One of his former strongest supporters and good buddies in the Senate, Senator Arlen Specter, wrote him a letter and said, "Do you read the letters we sent you? Are you too busy even to answer them?"

So they haven't even gotten to the point where they're talking about, let's say, he briefs the committees in private. He has just stonewalled them, and it's frustrated them.

GIBSON: Ashcroft has taken a lot of heat from John Turley, he's taken some heat from you...

NAPOLITANO: Yes.

GIBSON: ... and now he's taking heat from the Republicans. Can he hold his position that he can conduct the war on terror more or less in secret indefinitely?

NAPOLITANO: I think he can. I think he's basically a decent human being whose heart and mind and goals are in the right space. He's just -- in the right place. He's just got to watch his public perception of authoritarianism and answer to the Congress when they call him.

GIBSON: Judge Andrew Napolitano.

As always, thanks a lot.

Coming up on THE BIG STORY, the Clintons. Could a TV talk show be in the works for the former president? You know how he loves to talk. And how about a White House run for the New York senator? She's been scheming on that for a while.

And then a radio-show prank in a church -- a big church. Is it time to pull the plug on these shock jocks? Our own Heather Nauert has that story.

And a different church is working on changing its image, saying the songs they sing, hymns, are not barroom ballads.

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