Tomato Sauce: In a large saucepan heat the olive oil. Add the onion, garlic, chilli and the piece of ham. Cook while stirring constantly for 10 minutes. Add the paprika and flour. Stir and cook for a minute ensuring the flour does not burn. Add the tomatoes, salt and sugar. Bring to the boil then reduce the heat and cover. Let simmer for 10 minutes.
Remove the ham from the tomato mixture and set aside for another use. Add the wine to the tomato mixture. Using an immersion blender, puree the tomato mixture until smooth. Set tomato sauce aside until ready to serve.
Potatoes: Heat extra virgin olive oil in a large saucepan or deep fryer until hot but not smoking, about 180 degrees C. Add the potatoes and deep fry until golden brown. Remove from the oil then drain on a plate lined with paper towel.
Salt the potatoes to taste. Serve immediately with sauce drizzled over top.