help! hole in engine block?

Hi

I have a 1994 Citroen ZX 1.8i.

I took it to the Citroen Authorized workshop as it was sluggish, black smoke was pouring out the exhaust, the fule injection warning light was on, and i was losing water.

The guy told me that i was losing water due to a "hole in my engine block" and that i need to buy another complete motor.

In addition to this, the black smoke etc., is probably something connected to the fuel system and may need to replace additional parts.

Oh, also, one of the bolts holding the manifold to the block had snapped, so a pricey drilling jo to get that fixed.

My question:

Anyone heard of a hole in the engine block?????

Much thanks

Zxer

Just to clarify, the car has +-160 000km and been serviced every 10 000 - 15 000 since new.

Something fishy?

Thanks