It's a has a birth defect and is called a water puppy.
Whelping Water (Walrus) PuppiesThe headline stated: "A dog gave birth to human baby boy in Khayelitsha!". The email was being passed around the internet. Khayelitsha is a partially informal township in South Africa, on the outskirts of Cape Town in the Cape Flats. Water puppies are not a well known birth defect and are often misdiagnosed.