Do you think this basement room can be fixed or needs a total rebuild? This will blow your mind.

Poor Alex's Avatar (by Gravatar) by Poor Alex in  Basement 

This is a room underneath a front porch it's in a colder climate (TORONTO). It has a poured concrete landing. There was mold coming through the drywall so I took all of the drywall off to reveal the worst basement build I ever have seen. I estimate it was built about 25 + years ago. It's a solid cinder block base but halfway up the wall they used a darker cinder block material that was not as strong and is turning to dust. They used clay pavers instead of bricks to fill the corners that are also turning to dust and most of the upper mortar is 50% effervescence now. The bottom half of the cinder block is still strong and durable. The leaky concrete landing on top has been repaired a few times in the past but still contains hairline cracks throughout, it's roughly 5 inches thick slab approximately 8 x 8 feet with no relief cuts, it's a lot of cement to remove and take away. Plus it has a stone finish that was never sealed so I filled in missing grout and sealed it for now in hopes that it will help it to stay dry until I decide what to do. I want to avoid a total demolish and digging, I think I can replace the upper cinder blocks one at a time. I'm perplexed and need any guidance you can give me. Thank you in advance.
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If it was built it can be re-built. Keep the floor and the cinder blocks, which all sound solid. Replace everything above the cinder block with cinder block, but try to slip-in some waterproofing before you re-construct the walls...heavy plastic panels, 6-mil plastic sheeting, aluminum panels, etc.
I'm not too keen on keeping the landing, but if you can cinder block around and under its front edge it should be fine. If this really seems to be the only place water's coming in, then the same options as above and maybe add a drain tile tube or re-grade the area in front of the porch to flow away.
Then, it's rigid foam panels tight against your new walls with stud walls, more insulation and drywall. I presume new electrical will be run, as I wouldn't trust anything in that place after finding the "bonus room's" construction.

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My apologies to Poor Alex and Iggy: only now discovering that there were a couple of pictures associated with this question that did not get inserted in it, but would have been useful for an answer. There they are attached at the bottom of the original question

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