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Relying on references to hire employees

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Some organisations, especially in the internet sector are relying on references of powerful people to hire employees and these powerful people are liars making fake claims about their sindhi school dropout, cheater housewife and other fraud employees who do not have any online income. Do companies, government agencies rely on references alone to hire employees in your country?
 
Many government agencies and private companies that prioritize references when hiring employees will inevitably fail or go bankrupt. Most of them are unproductive, unable to create new innovations or possess skills that are beneficial to the business.
 
Though the employees hired through references are not doing any computer/ mobile work, they get salaries. This has become a sophisticated way to bribe powerful people, getting their relatives and friends monthly salaries faking online income using robbed data.
 
Some top government employees hate their female engineering college classmate and are falsely claiming that their greedy gujju stock trader and other real girlfriends who did not study engineering, have the resume, savings of their real classmate, causing problems for the engineer.
 
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