What she is doing with them isn't morally right, in most of our minds. It is not what we would do, and certainly not how we envisioned raising our children.
Is it legally right ? I don't know for sure. That is why you need to see your lawyer as soon as possible.
Most settlements I have seen, strongly word that the other parent needs to foster the relationship with the other parent. Most of the time, that means to just keep quiet.
You have told the girls that this is between their Mother and you, now let your actions prove that to them. They are going to learn about adversity by watching how you handle it...
You aren't always going to like what she does, or approve of the way she parents. That is something ( and the hardest thing) that you are going to have to realize, you cannot control.
As long as it doesn't physically harm the girls, then you have to let it be. The emotional aspect, will have to be dealt with sooner, rather than later here though.
Is what she is doing right ? ..... Probably not
Does she have a legal right to ? ....... I don't know
I stand by what I have said though, you need to document EVERY THING and present it to your lawyer.
File for a temporary custody agreement..
Get a Guardian appointed for the children....
And go from there.
You also can't let fear keep you from doing what is right for them though.