South Korean Public Procurement Service (PPS) has introduced the Fingerprint Recognition e-Bidding System (FRBS) to effectively prevent corruption such as illegal proxy bidding and bid rigging. PPS has designed the Fingerprint Recognition e-Bidding System (FRBS) to invite only qualified and registered bidders with enhanced measures to protect bidders’ information. With the introduction of FRBS, those who wanted to register a proxy bidder had to submit a certificate of employees’ insurance to confirm their affiliation. With the new technology in effect, there was no single case of illegal lending of certificates reported compared to 1,777 cases (worth about $30 million) prior to the implementation. The system has also reduced signs of illegal e-bidding attempts and secured transparency and fairness. Not having to monitor illegal bidding activities, organizations saved about $5.5 million, besides the establishment of a new market valued at $7 million, where it is actively used. The new system allows users to submit bids only when users’ fingerprint matches with pre-registered fingerprint in the Biometric Security Token. Unlike other authentication certificates, it can’t be utilized by others except the user as it is based on their biometric information. Earlier to this ‘Korea On-line E-Procurement System (KONEPS)’ was being used and there were cases reported that bid brokers borrowed the registrants’ certificate and participated in the bid illegally to gain profit when the contract was awarded, raising concerns about the reliability of e-bidding, as well as a waste of national budget. All other precautionary measures such as Bidders Identification System, Informant Reward Policy and Corrupt Activity Analysis System took too much time and effort to investigate and impose administrative measures on fraudulent bidding practices. For Further Information http://gis.seoul.go.kr
International e-Gov Update
SOUTH KOREA INTRODUCES FINGERPRINT RECOGNITION E-BIDDING SYSTEM
From October 2012 • Informatics, National Informatics Centre