By John E. Yang
Washington Post Staff Writer
Saturday, November 15 1997; Page A09

The House ethics committee began an investigation yesterday into the relationship between House Transportation Committee Chairman Bud Shuster (R-Pa.), whose panel oversees highway and mass transit projects across the nation, and a Washington-based transportation lobbyist who once was his top aide.

Shuster, who has denied doing anything wrong, said he was "pleased that the committee is moving expeditiously. This is the proper procedure."

The committee was acting on a complaint filed by the Congressional Accountability Project, a watchdog group backed by Ralph Nader. The complaint questioned whether Shuster's ties with lobbyist Ann Eppard, his top congressional aide for 22 years, are proper.

The group filed the complaint last year after Roll Call, a Capitol Hill newspaper, reported that Shuster and his family often had lodged at Eppard's Alexandria town house, which the group alleged violated the ban on gifts to lawmakers. Shuster has said the arrangement is within House rules because of their longtime friendship.

Eppard also serves as assistant treasurer for Shuster's reelection campaign committee and has provided transportation for him. She receives a $3,000-a-month consulting fee for her campaign work and has helped him raise $1.7 million since 1995, much of it from the transportation industry.

Eppard's lobbying firm, Ann Eppard Associates, specializes in transportation issues. It received $1.1 million from 17 clients in 1996, according to House records. In the first six months of this year, the firm had 23 active clients and took in $740,000.

The probe will be conducted by a four-member investigative panel headed by Rep. Joel Hefley (R-Colo.) and Rep. Zoe Lofgren (Calif.), who will be the subcommittee's top Democrat. The other members are Reps. Jim McCrery (R-La.) and Chet Edwards (D-Tex.).

In addition, officials have said the Justice Department is looking into allegations that Shuster aided two campaign contributors in property disputes related to a massive $10 billion Boston construction project.

The complaint against Shuster was filed last year and carried over to the new Congress by the ethics committee. The panel also agreed to carry over a complaint filed by Democratic lawmakers alleging that House Speaker Newt Gingrich (R-Ga.) received improper contributions, gifts and support from GOPAC, a political action committee he once headed. The ethics committee has not yet decided whether to begin an investigation into that matter.