Friday, January 10, 2020

Masterminds and Blackands

The latest news rocking the country are audio tapes leaked anonymously to the MACC purportedly of former PM Dato Seri Najib in calls with numerous former Govt officials, UAE royalty and his wife Rosmah Mansor.

MACC chief commissioner Latheefa Koya in a press conference disclosing the audio recordings of the calls has said "we (MACC) are quite satisfied that the recordings were authentic"

The question on everyone's mind will almost certainly be who could have tapped Najib's calls given the almost flawless clarity?

I would proffer the only person who has every motive, opportunity and means to do so, for all the obvious reasons - Jho Low. And probably with Rosmah's knowledge. It would make perfect sense given what have been their reported close relationship and character of both personalities.

If this is so it would also explain 3 days ago that Jho Low had come out saying "I am not the mastermind of the 1MDB scandal" in a possible plea deal with the Govt or a blackhand in burying Najib to take the fall.

Talking about the audio recordings being authentic brought to mind a related scandal not too long ago when PM in waiting, Dato Seri Anwar ibrahim, in a like manner press released a sex tape which was reported thus,

"A foreign video expert has confirmed that the sex video of a man resembling Opposition Leader Datuk Seri Anwar Ibrahim is authentic.

Deputy Inspector-General of Police Datuk Khalid Abu Bakar said the expert had corroborated the findings of local video analysts over its authenticity."

In the same report the masterminds was the Malacca chief minister Tan Sri Abdul Rahim Tamby Chik and 2 others calling themselves "Datuk T"

Tan Seri Abdul  Rahim was also implicated by the DAP at one time in another scandal of sorts and even expressed himself that there were blackhands involved.

Mastermind and blackands are nothing new in Malaysian politics.

Consider Economic Affairs Minister Azmin Ali when his own "Parti Keadilan Rakyat (PKR) president Anwar Ibrahim on Wednesday (Jul 17) said he was "shocked" to learn of the arrest of his political secretary in connection to the dissemination of a viral sex video implicating a Cabinet minister" and "added that Economic Affairs Minister Azmin Ali should resign if it is confirmed that he was involved in the video"

Earlier, the Anwar Ibrahim himself and his aide had denied being mastermind.

However as it turned out Anwar accepts IGP's statement 'Azmin not the person in sex video'

Speaking of leaked audios, masterminds and blackhands, there is another case also involving the DAP that behoves attention in a manner that can be described nothing short of extraordinary which I will explain accordingly.

It is the rape case of Perak DAP  Executive councillor Paul Yong Choo Kiong who pleaded not guilty of the charge.

At the trial it was also reported that "There could be a conspiracy planned to defame Yong that cannot be ignored,"

Also reported was Perak Mentri Besar Datuk Seri Ahmad Faizal Azumu had urged Yong to go on leave until his rape trial was completed.

After taking a leave of absence the Perak DAP exco member re-assumed duties as a Perak state executive councillor after he had consulted with Perak Menteri Besar Ahmad Faizal Azumu, who supported his return to work after being pressured into taking leave.

Coming back to the conspiracy mentioned before, it came to pass that Paul Yong came out to say there was no ‘black hand’ from Perak DAP leadership in his rape case.

Note how it was headlined, "Now, Yong insist no ‘black hand’ from Perak DAP leadership in his rape case" with an emphasis on "Now" meaning there was a great suspicion of a 'black hand'.

This is further explained in the report whereby there was discontent within the DAP after an 18-second audio clip, a speaker who sounded like Nga (Kor Ming, Perak DAP Chairman) was heard condemning a fellow party man’s resumption of official duties.

What is extraordinary as I said earlier is that looking at all the victims, NONE has come out to expressly say the persons suspected of being the mastermind or blackhand are NOT the culprits.

It seem contrived that Paul Yong would say as much because Nga Kor Ming has not denied the leaked audio clip and is a contradiction that Nga had "consistently" supported him

As the adage goes, you cannot proof a negative.

Sunday, December 29, 2019

Usual Suspects Part II

Nga Kor Ming has cross swords with his Menteri Besar, albeit without a denial, non more distressingly as in the case of Paul Yong Choo Kiong in the onset of being charged for rape.

While the Perak Menteri Besar had given his blessings to Paul Yong to return to executive council duties, Nga has different ideas on the "Tronoh assemblyman Paul Yong’s return to legislative duties while facing trial for alleged rape appears to have been without the consent of his leaders in Perak DAP, going by an audio clip that is being shared on WhatsApp"

Nga said he has no comment.  

I asked, why is Aziz responding to matters beyond his purview?

Well, for starters how about “In Perak, it is a known fact that DAP wanted Aziz Bari to be in that post" (the Menteri Besar post) and corroborating Nga's disdain for Paul Yong above, "The Perak MB’s move to allow Paul Yong, a DAP state executive councillor accused of rape, to return to work pending the outcome of his trial has also angered the DAP."

It has to be said Nga being featured denigrating Paul Yong warrants some attention. Why would DAP supporters want him to resign?

It had earlier been reported of Nga Kor Ming’s ambiguous defence of a DAP lawmaker whom colleagues believe is the target of a conspiracy. 

Also in the same report, Nga and his cousin, Datuk Ngeh Khoo Ham, have held the reins of Perak DAP for over a decade, which is common knowledge,

It thus comes as no surprise for Ngeh to issue a statement within a statement with matters boiling over.

Ngeh's statement is headlined "Call on the police to quickly conduct a full investigation into the possibility of a political conspiracy in Paul Yong’s case as has been reported by me to the police".

Ngeh had made a police report that a "man who brought the Indonesian maid to lodge a police report over her alleged rape by a Perak executive council member received RM100,000" and that he "had  met the man face to face, in the presence of other YBs."

This would be at somewhat at odds with Ngeh's statement within a statement above about "friction between Paul Yong and the DAP Perak State leadership by calling for the resignation of YB Nga Kor Ming" as the supporters calling for Nga to resign seem to give no credence to the police report made by Ngeh.

The statement within the statement also stated Paul has informed me that this group (calling for Nga's resignation) has nothing to do with him.

What is important to note is that a conspiracy to frame Paul Yong has been raised whether within or without the confines of the DAP.

Not only would a conspiracy point to Paul Yong's innocence it is further buttressed by this report "lawyer Gabriel Susayan and Shalvin Kanvinchelvan, who was appointed as watching brief by the victim’s mother, said the victim might have been used as a political pawn in the case."

It thus comes down to who is the "black hand" in a conspiracy to frame Paul Yong?

Well, Paul has reportedly come forward to "insist no ‘black hand’ from Perak DAP leadership in his rape case". and "Yong said that the Perak DAP committee led by Nga Kor Ming has consistently supported him".

Absent in the report is Nga denying being the person in the audio clip insulting Paul.

Saturday, December 28, 2019

Usual Suspects

Anyone with worth his salt as a political observer of Malaysian politics will tell you it was truly an unprecedented achievement to topple the one and only party, Barisan Nasional (BN), which had been ruling the country for 61 years since it's independence in 1957.

More so, when the person leading a new coalition of diverse parties the Pakatan Harapan (PH), Tun Mahathir, was a nanogenarian at 92 in that watershed general elections in 2018 and became the oldest prime minister in the world today.

In the same vein, keen political observers will tell you a component party within the Pakatan Harapan, the Democratic Action Party (DAP), had been labelled a Chinese chauvinistic party as it is wholly dominated and catering to the second largest ethnic race in the country.

The largest ethnic race, the Malays, had in the past viewed the DAP with suspicion and wary of the party with it's "Malaysian Malaysian" slogan which had negative overtones.

You could say it was a marriage of convenience for a party that had been labelled "chauvinistic" as such to form an alliance with the other dominant Malay based parties to wrest control of the previous government.

After all the ecstasy and joy expressed across the nation in that momentous occasion and after 19 months since, the honeymoon is over.

A distinct sign of a disgruntled electorate is the loss of a ruling party parliamentary seat of the Pakatan Harapan to the now opposition Barisan Nasional in the Tanjong Piai by-election.

Fissures are appearing within the ruling coalition none more so than the PM succesion issue of a PM in waiting, Dato Seri Anwar Ibrahim, leader of the largest party in parliament, Parti Keadilan Rakyat or PKR.

Political intrigue within the the ruling party PH unrelated to the succession issue appears to have reared it's head taking advantage of the Tanjong Piai loss.

It began even before and Tanjong Piai with sex allegations first with PKR's Azmin Ali and of late Dato Seri Anwar Ibrahim which to many outsiders would seem to be a conspiracy of eliminating a rival or thwarting the succession.

Even the DAP has jumped on the succession issue with a state assemblyman from Perak, Aziz Bari, weighing in with some theoretical scenario of sorts of the PM succession.

You have got to hand it to Bari, coming out of blues to give his 2 sen worth. After all he's just an assemblyman and whether he has locus standi is debatable in the context of a subject matter well beyond his purview.

This is not the the only time Aziz sees fit to dive into an issue.

Just days ago Aziz came out with his opinion in the matter of land titles in an issue that has the Perak Menteri Besar, Ahmad Faizal Azumu having differing opinions with the DAP Perak chairman, Nga Kor Ming.

Aziz's opinion, in responding to an opposition allegation, has taken the side of his state chairman Nga.

The Menteri Besar is of the view that "the proposal to grant 999-year ownership or permanent titles to residents of new villages is contrary to the constitution."

Chairman Nga on the the other hand has an opposing view.

While the differing views is being resolved, the NLC Act 56 of 1965, has the -

76. Meaning of alienation.
The alienation of State land under this Act shall consist of its disposal by the State Authority-
(a) for a term not exceeding ninety-nine years; which favours the Menteri Besar

Here, one has to bear in mind that while Aziz Bari is a former constitutional lecturer, it is not his portfolio in the state executive council on matters regarding state land. He is in charge of education, science, environment and green technology.

The executive councillor who holds the relevant office is Paul Yong Choo Kiong who is the exco in charge of Perak housing, local government, public transport, non-Islamic affairs and new villages.

This begs the question, why is Aziz responding to matters beyond his purview?

Interestingly, this is not the first time Nga has cross swords with his Menteri Besar. 

Sunday, December 15, 2019


Just thinking if Tun could foresee he would be PM again 15 years after he retired in 2004, would he have retired?

Would his Vision 2020 have been achieved with him at the helm?

15 years after Tun retiring we now have a new Govt. 

A Pakatan Harapan Govt.

It's 17 days to a new year, 2020.


Thursday, May 5, 2016


Another USD 52,412,000 interest payment is due Wednesday, 11 May 2016.

Lets forget the dispute between 1MDB and IPIC for a moment.

Here's a lowdown of interests to be paid counting only the 3 Goldman Sachs managed bonds, two 2012 USD 1.75 billion bonds issued by 1MDB Energy (Langat) Limited (5.75% coupon) and 1MDB Energy Limited (5.99% coupon) respectively and a 2013 USD 3 billion bond issued by 1MDB Global Investment Limited 4.40% coupon), on a yearly basis.

The yearly interest for the above bonds are as follows (1 USD = MYR 3.90):

  1. 1MDB Energy (Langat) Limited    Rm   392,433,600.00
  2. 1MDB Energy Limited                  Rm   408,813,600.00
  3. 1MDB Global Investment Limited Rm   514,800,000.00

Yearly Grand Total                       Rm 1.316 billion

That works out to a whopping Rm 3,605,609.00 a day!

In 6 and 7 years time when these bonds mature, 1MDB has to fork out a humongous USD 6.5 billion or Rm 25.35 billion.

And how will 1MDB obtain this amount of money?

One clue is, when 1MDB defaulted on the interest payment, it's bonds actually became attractive.

Bond buyers won't blink at all.

Hey, it's a sovereign backed bond. So, what's the worry.

Sunday, May 1, 2016


In my previous post I had ascertained that it was 1MDB which was solely responsible for the payment of the interest due as issuers of the USD1.75 billion bond and in failing to do so was deemed to have defaulted.

Before proceeding we need to recall IPIC had issued a statement to the London Stock exchange on 11 April 2016 in a matter relating to an entity, AABAR BVI, in which IPIC had stated is not an entity related in any way to the IPIC group of companies.

Forget about the reactions by 1MDB or media reports in response to that statement. In my humble opinion it was nothing more than a panic reaction to a shocking revelation.

A wake up call.

I can safely say the 11 April statement by IPIC has nothing to do whatsoever about the issue at hand i.e. 1MDB defaulting and the more trying issues ahead for the government backed vehicle as a result of this default.

To better understand the present predicament facing 1MDB we need to look at the chronology, by way of IPIC's statements filed to the London Stock Exchange, up till now.

10 June 2015 RNS Number : 7064P 1MDB Debt Settlement Arrangements

This was the start that has turned into a contentious relationship wherein a particular document is mentioned and is at the heart of the disagreement between IPIC and 1MDB a "binding term sheet"

The relevant points of the agreement:

  •  IPIC had disbursed to 1MDB a sum of USD 1 billion.
  •  IPIC will assume all interest payments in relation to 2 bonds with a principal sum totalling USD3.5 billion. 
However, it is clearly states in parenthesis "on an interim basis". Please keep this in mind because it explains why IPIC and not 1MDB had made 2 interest payments in October and November of 2015.

  • IPIC would directly assume liability for all payment obligations under the Notes (the Assumption of Debt) and forgive certain financial obligations of the 1MDB Group to the IPIC Group (the Debt Forgiveness) upon the completion of the transfer of assets.
This meant that IPIC would take full responsibility for interest payments in contrast as a guarantor making  payment when the issuer, 1MDB, is deemed to have defaulted.

Again however, this is subject  to and "upon the completion of the transfer of assets". I am making an assumption that these assets must have the value of the sum of the total interest payments due until the bonds mature. It will not make common or business sense otherwise.

The last and final point:

  • IPIC is to have received a transfer of assets with an aggregate value of an amount which represents the sum of the Cash Payment, the Assumption of Debt and the Debt Forgiveness by 30 June 2016.

Within the context of the agreement, IPIC would only assume a role that of a primary obligor and not as guarantor only "upon the completion of the transfer of assets" and by the 30 June 2016.

The total value of the assets to be transferred, in a previous post have proven to be accurate in this official 1MDB statement dated  26 April 2016, "...a binding term sheet executed on 28 May 2015 (“Binding Term Sheet”), under which IPIC assumed the obligation to pay the interest and ultimately the principal for, amongst others.."

18 April 2016 RNS Number : 4672V 1MDB Debt Settlement Arrangements

This statement was issued on the very day that the interest was due on the 1MDB Energy (Langat) Limited USD1,75 billion bond tranche and was greeted by incredulity on the part of 1MDB not only to this statement but also to the unrelated Aabar BVI statement of 11 April.

To know more why it is unrelated, one need to understand that much have been reported by the media including stylised graphics of 1MDB payments made to Aabar. But if 1MDB took the trouble to peruse IPIC's annual reports from 2012, 2013, 2014 up to the latest 2015 (unaudited), nowhere in these reports are stated any payments from 1MDB to Aabar in the accounts and Notes. In fact, there were media reports that IPIC had been looking into these mystery payments claimed to have been by made 1MDB. CNBC had this report dated 9 September 2015.

It in this statement that the all important "binding term sheet" is given more prominence with a heading of its own, Status of the Binding Term Sheet together with the main heading 1MDB Debt Settlement Arrangements.

This 1MDB Debt Settlement Arrangements filing underlines the following:

  • IPIC extending financial support to 1MDB at he request of 1MDB and MOF
  • 1MDB and MOF acknowledging liabilities owed to IPIC
  • Conditional settlement, release and discharge of certain obligations and liabilities between the IPIC, 1MDB and the MOF 

The Status of the Binding Term Sheet detailed these matters:

  • IPIC had fulfilled its obligations. 1MDB and the MOF had failed to make certain payment and other obligations including a specific sum of USD 1,102,725,000 plus interest accruing

As mentioned earlier, IPIC had made interest payments in October and November of 2015. This is disclosed in the IPIC (unaudited) 2015 financial report. Interests on two tranches of bonds totalling USD 3.5 billion are paid semiannually at 5.75% and 5.99% coupons issued by 1MDB Energy (Langat) Limited and 1MDB Energy Limited respectively.

Interests 5.75% of USD 1.75 billion semiannually is USD 50,312,500 and at 5,99% is USD 52,412,500 totals USD 102,725,000 and this amount added to the USD 1 billion, disbursed by IPIC to 1MDB in June 2015, gives a grand total of USD 1,102,725,000. This grand total (plus interest accruing), the sum that 1MDB failed to pay IPIC specifically stated in the statement filed, as it turned out to be was supposed to have been paid by 1MDB on 31 December 2015 and admitted by the 1MDB CEO, Arul Kanda,  in the greeted incredulity link above.
  • 1MDB and MOF in breach of Binding Term Sheet. IPIC and Aabar duly terminates Binding Term Sheet 
  • 1MDB and MOF still bound by obligations of Binding Term Sheet including indemnity to IPIC for non performance and any claims against IPIC in relation to bond guarantees by IPIC.
  • IPIC had engaged and given 1MDB and MOF opportunities to remedy defaults without success. IPIC reserves rights and considering options including referring matter to appropriate resolution forum.
The October and November semiannually interests payments by IPIC is in compliance with the 28 May 2015 Debt Settlement Agreement, made on interim basis.

This filing to the London Stock Exchange has an ominous tone of legal repercussions and showed a definite strained relationship between 1MDB and it's once most important business partner.

There is no mention of the interest payment due the same day 18 April but it drew an immediate response from 1MDB which understood the IPIC statement to mean that it would not make the interest payment.

Arul Kanda was also reported by Reuters to have said that the default in question would incur cross defaults on IPIC as well as 1MDB.

25 April 2016 RNS Number : 1844W Upcoming Interest Payments under certain 1MDB Notes

And so it was to be and rightly so but not in the way Arul Kanda had been quoted.

I append the statement verbatim for better comprehension of IPIC's contention in matters relating to the Debt Settlement Arrangements and interest default:
  • IPIC will make the U.S.$ 50,312,500.00 interest payment to holders of the Notes issued by 1MDB Energy (Langat) Limited and guaranteed by 1MDB, but only after 1MDB defaults on its payment obligations in respect of such Notes
  • A 1MDB default does not cross-default IPIC
On 10 June 2015, IPIC GMTN Limited issued an announcement (RNS Number 7064P) relating to a binding term sheet dated 28 May 2015 (the Binding Term Sheet) and other ancillary documents entered into between International Petroleum Investment Company PJSC (IPIC), Aabar Investments PJS (Aabar), Minister of Finance, Inc., Malaysia (MoF) and 1Malaysia Development Berhad (1MDB). Amongst other things, the Binding Term Sheet provided for IPIC assuming the obligations to pay (on an interim basis) interest due under two IPIC guaranteed 1MDB financings amounting to U.S.$3.5 billion in aggregate principal amount, including U.S.$1,750,000,000 fixed rate 5.75 per cent. notes due 2022 issued by 1MDB Energy (Langat) Limited and guaranteed by 1MDB (the Notes).

IPIC's guarantee of the Notes (the Guarantee) provides that IPIC's payment obligations in respect of the Notes are subject to certain conditions, including the occurrence of a 1MDB Event. 1MDB Events, in turn, include a default by 1MDB for more than five business days in the payment on the due date of interest or principal payable in respect of the Notes (1MDB Default). The Guarantee also prescribes the number of days following such 1MDB Default within which IPIC must fulfil its payment obligations in respect of the Notes. A 1MDB Default does not cross-default IPIC.

In respect of the Notes, IPIC notes that an interest payment of U.S$ 50,312,500.00 was due on 18 April 2016. IPIC understands that neither 1MDB Energy (Langat) Limited nor 1MDB have made this payment. Should 1MDB Energy (Langat) Limited and 1MDB fail to make such payment on or before 25 April 2016, a 1MDB Default shall occur.

As at the time of this announcement, IPIC is not aware of the Guarantee being called upon. IPIC has always honoured its obligations arising from any agreements it has entered in to and will continue to do so. Accordingly, if a 1MDB Default occurs and IPIC is called upon in accordance with the procedure prescribed in the Guarantee, IPIC will honour its obligations in relation to this interest payment, which shall be met out of IPIC's existing liquidity.

IPIC notes that the status of the Binding Term Sheet continues to be as disclosed in the announcement issued by IPIC GMTN Limited on 18 April 2016 (RNS Number 4672V). 1MDB and MoF are in default pursuant to the terms of the Binding Term Sheet and IPIC's and Aabar's obligations under the Binding Term Sheet have terminated. Any payment in respect of the Notes would be made by IPIC in respect of its obligations under the Guarantee and not in any capacity under the terms of the Binding Term Sheet. IPIC notes that it is entitled to the benefit of indemnities from 1MDB and MoF in respect of all amounts that it may be required to pay in respect of the Notes and the Guarantee under the terms of the Binding Term Sheet and these indemnities survive the termination of the Binding Term Sheet.
IPIC reserves all its rights under the above documents and in respect of the various options for settlement.

It is clear that matters had escalated with distinct conflicting interpretation, from what had been reported and disclosed in this statement filed, of the Binding Term Sheet and clarifying guarantee matters in relation to the two 1MDB bond tranches issued.

This filing is more detailed explaining IPIC's position and the two main points are that IPIC will honour its obligation on the payment interest but only after 1MDB has defaulted and repudiates Arul Kanda's assertion that a 1MDB default would cause a cross default of IPIC's bonds.

IPIC states under the two bond USD 1.75 billion issue Notes, it's guarantee is conditional subject to an event such as 1MDB defaulting.

The filing goes on to state that henceforth IPIC would honour all its obligations only under the Notes of the bond issues and not the Binding Term Sheet which IPIC contends it's obligations had ceased as it had been terminated due to breaches by 1MDB and MOF.

As in it's previous statement, the language is legalistic even specifically stating it is entitled it indemnities from 1MDB and MOF, in both the bond issue guarantee Notes and Binding Term Sheet. It also reiterates reserving it's rights in options for settlement.

29 April 2016 RNS Number : 8054W Scheduled Interest Payment under certain 1MDB Note

In honouring its obligation as guarantor, explained in detail in their previous filing, IPIC had this filing confirming payment of the interest after 1MDB had been deemed to have defaulted.

Salient points:

  • IPIC confirming the interest had been paid after 1MDB default.
  • Written demand for indemnity from 1MDB and MOF as per the Binding term Sheet
This filing is even more legalistic in nature as it explicitly states that a written demand would be made to 1MDB and MOF for indemnity.

The filing has reference to all the statements I have appended and commented. It supports my view that the Aabar BVI 11 April filing has nothing to do in the present dispute as far as IPIC is concerned.

As the dispute progressed, it looked increasingly possible that IPIC or 1MDB, would have to seek redress by way of a legal recourse. 

This is especially so on the part of IPIC.

It it happens to come to pass, taking even the barest minimum USD 1,102,725,000 plus the current bond interest paid, will now stand at USD 1,153,037,500 is substantial.

1MDB surplus funds of RM 2.3 billion or USD 587,184.000 (RM 3.917 = USD 1) would be pale in comparison to USD 1,153,037,500 the sum IPIC would be seeking in a written demand. 

Addressing the Aabar BVI disputed payments and for good measure, this document downloaded from this link (or from Bondsupermart and key in '1MDB' in the bond quick search window), is the offering circular by 1MDB Global Investments for a USD 3 billion bond issue.

In it is reference to a joint venture company Abu Dhabi Malaysia Investment Company Limited or ADMIC,
The net proceeds of the issue of the Notes will be approximately U.S.$2,716,760,000 after deducting certain commissions, fees and expenses. See “Distribution Plan, Activities of Goldman Sachs and Selling Restrictions”. The Issuer will either on-lend all of the net proceeds of this Offering to ADMIC or use the net proceeds of the offering to fund its investment in ADMIC, which will be a 50:50 joint venture between the Issuer and Aabar. See "The Joint Venture".
The above bond issue is reported in a press release by 1MDB. 

However, ADMIC is not mentioned anywhere in IPIC's 2013 annual report even though in the 1MDB 2013 Annual report,  Note 45 Significant Events Subsequent to The End of the Reporting Period (i) (h),  Aabar Investments PJS became a 50% shareholder of ADMIC

Friday, April 29, 2016


Press headlines over here, MalayMailonline "1MDB says in ‘limited’ default after IPIC fails to make bondpayment" and StarOnline "1MDB: Limited cross defaults after IPIC fails to make bondpayments
Press headline over there, "1MDB defaults on bond after missing $50m payment amid Ipic dispute"

See the difference?

Over here, IPIC has defaulted. Over there 1MDB is the defaulter.

Definition of Obligor:
A person or entity who is legally, or contractually, obliged to provide some benefit or payment to another. In the financial context, the term obligor refers to a bond issuer, who is contractually bound to make all principal repayments and interest payments on outstanding debt. The recipient of the benefit or payment is known as the obligee.

Definition of Guarantor:
A guarantor is a person who guarantees to pay for someone else's debt if he or she should default on a loan obligation. A guarantor acts as a co-signor of sorts, in that they pledge their own assets or services if a situation arises in which the original debtor cannot perform their obligations.

So there and here we are, in matters of the press spat.

Which brings us to the half past six lawyer.

With the definitions above a layman can easily understand what it means. Any qualified lawyer worth his salt would and must understand the same.

1MDB CEO and qualified lawyer, Arul Kanda, has said so himself, from this Reuters report,
"The guarantee is clear and there is no dispute - IPIC said they will pay under the guarantee and 1MDB as the borrower is the primary obligor," said Arul. 
While a layman may understand the definitions above, "obligor" is not a commonly used word.
But this half past six lawyer is quoted to have said it himself. Surely and admittedly, he must at the very least been aware and knows 1MDB is primarily obligated to make the interest payment.
I won't even bother to provide the definition of "primary".
And by the way Mr Arul, your "curveball" in Bloomberg or anywhere else in the whole wide world, is NEVER ever from left field.