Sounds like it's pretty messed up. Getting a broken drill bit out of that hole is going to be hard. Also, there is really no way of tightening up the hole that the lock goes in without shimming it with something. If the steering lock is important to you, you might be able to cut the whole piece off of the frame and have a new one made and welded back on. Most any machine or fabrication shop should be able to make you a new one. Check online to see if there is a machine shop near you that does 'Broaching'. The slot will have to be broached.