power steering leak , knowledge needed please

Hi Guys and Girls Ive got a major power steering leak in my Levin GT ae101, Its not leaking from where Id have thought it should do...
My mates a Mechanic and came had a look and hes abit baffled also. Tried to find some info but with no luck so hoping someone on here has solved this problem, Tried to upload a photo without much luck so will try to explain where its coming from..
I removed the steering boot which was full of fluid , pulled it back out of the road.
then I turned the wheel to see where it was coming from and theres a hole around 4mm that goes right through the shaft out near the knuckle , when I turn the wheel it squirts out both top and bottom hole with alot of pressure .
Wanting to know why its coming out this hole. dont see any need for fluid to be in shaft out there. Ill add a picture if someone can tell me how to .
cheers
Richard