Help 5yr old cat submissive urination / defecation.

I trully do not know if anything can be done at this point. Figured
will throw it up there, see if someone had simmilar problem.

The cat is 5 years old and extremely submissive. Its afraid of
everything and anything and recently it started 'spilling outside'.
The cycle goes:
the cat gets scared
I pet the cat, - she likes it
I pick up the cat, put it on my lap and continue petting, sometimes
she purrs in respones
all of a sudden i feel the warm stuff all over my leg.... lift up the
cat, and there she is peeing right on me. I begin to get ticked off.
Throw the cat on the couch and proceed to clean up. Come back to move
the cat from the spot where it lended all of a sudden it starts taking
a dump right there. The alternative, it gets in the middle of the
floor and as I approach it starts... well you got the picture.

This happened on more then one occasion..

Has anyone seen anything like it?