So, aside from this being a rather transparent way for a secular government to gain support by whipping up the emotions of it's more religious citizens, what's the big deal? All this shows is that Saddam's government was willing to exploit it's people by pushing their buttons. That's not exactly news.
So it is OK for Saddam secular regime as you are calling him, to endorse hundreds of sheikhs and scholars to issue a FATWA for JIHAD against the US but still convince yourself that Saddam was secular!