Heat the oil in a large heavy fry pan, add the chorizo sausage meat and fry for 1- 2 minutes, while breaking it into small pieces.
Add the onion, fry on a medium to low heat, stirring frequently, until the onions soften and turn a light golden colour, add the garlic and fry, stirring frequently for 1 – 2 minutes more.
Add the capsicums and mushrooms, fry while stirring for about 5 minutes or until the capsicum softens, add the sundried tomatoes, canned tomatoes, wine, dried herbs, season with salt and pepper and add the chicken pieces. Stir and bring to the boil.
Cover with a lid, turn down the heat and simmer for 30 – 40 minutes, or until the chicken is tender and the sauce has thickened.
Adjust the seasoning, add the olives and stir through.
Serve with steamed rice or pasta.