Who else have problems with a Super Ace over heating?

I bought the vehicle about 18 mnths ago and experienced heating problems with it since the beginning.
The past week lost complete power and heard a whooshing sound, opened up and discovered somebody wrapped the exhaust just below the turbo with an asbestos fibre tape and two water clamps, obviously to cover a hole in the exhaust pipe just below the flange which connects the exhaust pipe to the turbo. The tape was in pieces and both clamps rusted and broken. Have not yet removed the pipe to inspect the size of the hole.

Now I am guessing that this botched fix didn't allow the turbo enough pressure to function 100% and therefore required the engine working harder and generating more heat than what the cooling system was designed for.

Am I correct in my assumption?

(Sorry the photograph uploaded incorrectly - it should be vertical and not horizontal)

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