In a bowl, mix the flour with the dried oregano, thyme and rosemary; season with salt and pepper.
Dust the lamb pieces in the flour to coat lightly and keep aside.
Heat a deep bottom pan, add a bit of oil and sear the lamb pieces in batches till browned all over; keep aside.
In the same pan, add bay leaf, onions and garlic. Saute till translucent.
Then add the red wine and cook on medium heat for 10 minutes to burn off the alcohol.
Add the crushed tomatoes and mix well. Season with salt and pepper.
Add the lamb pieces, mix well and add water if necessary. Cook covered for 40 minutes on low heat.
Open and add the olives and parsley. Check seasoning and continue to cook on low heat for another 10 – 15 minutes or till the lamb is soft and done.
Garnish with freshly chopped parsley leaves.
Serve hot with bread.