ESCOURT, South Africa, Dec 4 (AFP) - It is unusual to meet a South African chief who lives in a colonial farmhouse, but chief Mzwenkosi Hadebe was given his house by the Amahlubi tribe in keeping with his status.

As head of 10,000 Amahlubi in eastern KwaZulu-Natal province, Hadebe, 52, is treated with respect. He has the power to approve and direct the delivery of local services and to judge civil disputes, making him the most influential person in his community.

This is why Hadebe occupies the farmhouse, part of a communal land settlement awarded to the Amahlubi in March to return territory taken from them by the apartheid regime.

Most of the emaciated Hadebe's subjects live in mud huts, but his affluence is relative: the house is almost empty, with his sparse furniture hardly filling the rooms.

Yet the sitting room with its polished red verandah is appropriately formal for the meetings he holds to resolve disputes and judge minor crimes.

"Many chiefs are complaining the powers of the 'amakhosi' are being undermined along with job opportunities," Hadebe says.

About a month ago the chiefs rejected proposed amendments to the Municipal Structures Act intended to resolve the problem, and came close to scuttling municipal elections to be held on Tuesday.

But they came to a "gentlemen's agreement" with the government under which their territories will be virtually self-governing in the meantime.

Hadebe is prepared to adapt his role, dealing with the AIDS epidemic and widespread unemployment.

He is trying to make his people aware of the risks of HIV and AIDS and also to reduce the stigma attached to it.

"People in my community are very scared to come out (as HIV-positive) and I insist they must not be afraid," he says.

Hadebe is also working with the Amahlubi Land Trust -- responsible for managing the 8,600 hectares (more than 20,000 acres) of land transferred to the tribe -- to create jobs and reduce crime.

"I am very happy about the land and believe we can create job opportunities," he says, talking about the agricultural and ecotourism potential of the land.

While he is committed to the community's economic development, Hadebe distances himself from politics. "As the 'nkosi' I don't expose my loyalties except when I vote," he says, when asked which party he supports.

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