A joint Garda-PSNI operation has broken a major illegal drugs operation on both sides of the Border.
The PSNI uncovered a drugs factory and seized nearly 6kg of cocaine worth nearly €735,000 at a house between Dungannon and Moy, Co Tyrone.
Three men have been arrested, two of whom have links to the INLA, but police insist their investigation is a criminal rather than paramilitary one.
The find and the arrests are linked to a Garda operation in Co Cork in which a further €500,000 worth of cocaine and cannabis were seized.
The Taoiseach raised the drugs seizures in the Dáil yesterday, suggesting republican links.
He said IRA recruiting and training was continuing and there was still a "crossover into criminal activity . . ."
"We have seen cases overnight. I haven't got the full facts on those, but I know that there was a serious drug case involving people who have had a past record," he said.
Det Supt Hayden Bell, head of the PSNI drugs squad, said the arrests followed what he called a protracted, intelligence-led operation which had lasted many months.
He commended "excellent" co-operation with the Garda national drugs unit which made the seizure near Timoleague, Co Cork following a request from the PSNI.
He said the cocaine had been brought across the Border to Co Tyrone for preparation in advance of wider distribution.
No arrests have yet been made in connection with the Co Cork seizure.
A Garda spokesman said: "Investigations are continuing. Gardaí are liaising with the Police Service of Northern Ireland in connection with this."
One of those arrested is understood to be a former member of the INLA released on licence from prison in 2000 under the terms of the Belfast Agreement.
According to one source, a second suspect is also a former member of the INLA who was "dishonourably discharged" in 1987.
He was understood to have been involved in a kidnapping gang led by the so-called "Border Fox" Dessie O'Hare.
PSNI sources would not be drawn on the identities of those arrested, but they are hopeful that charges could be brought within the next 48 hours.
The head of the PSNI investigation would say only: "We have three men arrested at the moment.
"We will pursue all lines of inquiry, we will establish if there is a paramilitary involvement, that will certainly be a line of inquiry."
Supt Bell said: "We have found cocaine and we have found other chemical substances which were to be mixed with that drug.
"We found utensils and materials to facilitate that. Our examination of that scene is still ongoing, a detailed forensic examination is taking place," Supt Bell added.
Supt Bell underscored the significance of finding such a sizeable haul of a class A drug and of breaking up the distribution network.
"This is a significant success because it's taking the drug out 'further up the supply chain'. We haven't taken out street-level dealers here.
"We haven't taken out street-level supply. We have taken out the drug as it has come into the province and moved on again and again before it hit the streets," said Supt Bell.
SDLP Policing Board member, Eddie McGrady said: "While we must wait for more details to emerge . . . this would appear to be the most serious and appalling involvement in organised crime.
"It again puts crime and the fear of crime central in the election and for the future of the island," Mr McGrady said.