Police say they seized $4 million worth of the drugs during raids in three Sydney suburbs yesterday, but the group had planned to import hundreds of kilograms of drugs.
A total of 2 kilograms of ice and 2.1 kilograms of heroin were allegedly found at the properties in the Sydney CBD and at Cabramatta and Hurstville, in the city's south-west and south.
Police say the men travelled to Australia for the express purpose of setting up a trafficking network in Sydney, Melbourne and the Gold Coast.
Officers from the NSW Asian Crime Squad pounced yesterday after a six-month investigation, in cooperation with the Australian Federal Police and the NSW Crime Commission.
Police say the five arrests include the two men allegedly running the syndicate, aged 28 and 48.
They were arrested late yesterday, one at a restaurant in Sydney's Chinatown and the other while he was travelling to Sydney Airport.
The men have been charged with offences including supplying commercial quantities of ice and heroin.
Both were refused bail to face court today.
Police then arrested two more men, aged 38 and 39, at Cabramatta and Hurstville.
Again both were charged with offences including supplying a commercial quantity of an illegal drug, and refused bail to face court today.
The final arrest was a 23-year-old detained by AFP officers in Melbourne.
The commander of the NSW Asian Crime Squad, Scott Cook, says the operation was still in its embryonic stage.
"This is potentially a very serious and large operation. There's no doubt in our minds that the people involved in this had aspirations certainly of importing hundreds of kilos of drugs," he said.
"They certainly didn't get to do that yet and I think in a sense we've prevented that from occuring, which is probably better than letting it occur and then seizing the drugs.
"They were well on their way. Two of the people involved flew out from Malaysia to Australia only about 10 days ago. They were the principals who came out to oversee the implementation of their plans, which was being carried out by others who were already in Australia.
"So it was very early days. We'll be alleging that they'd started to supply drugs in NSW with a view of developing their networks to supply further drugs in future."
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