The important part is the "...regardless of their qualifications". There is nothing wrong with hiring friends, or family as long as the person is qualified. OP didn't mention anything about qualifications, so I think it's a bit early to jump the gun and proclaim Nepotism.
In reality it's very common to get a job because a friend or a family member referred you.
In reality it's very common to get a job because a friend or a family member referred you.