Yes, your nephew has to be declared to be the biological father before any support is ordered. Often the child support enforcement unit does it and orders support all at the same time. Another thing that happends is that, somehow, the Petition to Establish paternity magically does not get delivered to the alleged father.
As to the second part of your question, he actually cannot be sure where the money is going, but he should get visitation as soon as possible and make sure that he is in her life all the time. That is probably the best way to "oversee" the safety and health of the little girl. The child support enforcement does not usually assist a person with getting visitation ordered, however.
Your nephew should demand a DNA test right away and ask for a copy of the entire file. He should then ask for a continuance until the DNA results come back. It probably will be all right. If the mother and grandmother have a private attorney, instead of the chld support enforcement, then your nephew definitley must have an attorney for his own good. Good luck to your family.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).