Sadly, lots of native Asians in Asia equate a western face with being fluent in English. Hence, the schools would rather hire a foreign teacher even if he/she is underqualified for the job. I've heard stories from some Asian Americans that try to apply for a teaching job in Asia and end up getting rejected because of the assumption their english fluency isn't good enough.Prejudice is still a problem in China. Many Chinese would rather learn badly taught English by Russians and Serbians just because they “look Western”.
If schools move to a more merit system where they take into account the applicant's credentials, experience and do a thorough criminal background check, it will weed out the bad ones. Lastly, the pro-western worshipping mindset of the local populace needs to change as well.