Coat a sauté pan with olive oil and place over medium heat until hot. Add the onions, garlic, and bay leaves cook and stir for 5 minutes until onions and garlic are soft. Add the olives and tomatoes. Continue to simmer and stir until the liquid is cooked down and the sauce is thick, about 15 minutes; season with basil, sugar, salt and pepper. Lower the heat and keep warm.