She cannot be supervised by her mother. Pressuring others to give her daughter preference is not allowed either. These are called Prohibited Personnel Practices. Here's a link to the MSPB PPP page: http://www.mspb.gov/ppp/ppp.htm

Prohibited Personnel Practices (5 USC § 2302(b))

Any employee who has authority to take, direct others to take, recommend, or approve any personnel action, shall not, with respect to such authority—

7. appoint, employ, promote, advance, or advocate for appointment, employment, promotion, or advancement, in or to a civilian position any individual who is a relative (as defined in section 3110 (a)(3)

(3)“relative” means, with respect to a public official, an individual who is related to the public official as father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister.

of this title) of such employee if such position is in the agency in which such employee is serving as a public official (as defined in section 3110 (a)(2) of this title) or over which such employee exercises jurisdiction or control as such an official;

The situation you describe can/should be reported to the Office of Special Counsel, who has the authority to investigate these type of situations: https://osc.gov/
To file a complaint: https://osc.gov/pages/file-complaint.aspx

I hope we hear the end of this. Outright nepotism is rare enough to make a big deal.

Anonymous call to the IG?

Letter to Congresscritter?