Coat the chicken pieces with flour and brown them in a large pot with olive oil over high heat. Set aside.
Cook the onion and garlic over medium heat, without browning, until they are tender. Remove excess fat. Mix the remaining ingredients, except the mushrooms, in a bowl. Put the chicken back in the pot and pour the tomato mixture over it. Cook, covered, until the chicken is tender and the sauce is thick, about 45 minutes. Add the mushrooms 15 minutes before the end of cooking. Remove the bay leaf and degrease if necessary.
Serve with rice or noodles.