Wow. What did they cut the wires with? A hacksaw?

1. What were they supposed to doing to it? Did it have a problem previously?
2. What are its problems now? What works and what doesn't?

Looks like it's a fairly standard 1 vol, 1 tone and a 3way toggle, which is simple enough, but I can't really see too much of how the toggle switch is hooked up.
Should look a bit like this, but in real life the earths always make it look more complicated.