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Tell them it was stolen.
No. After backing up and removing (and file level scrubbing) your own + 3rd party confidential data at home, allow the morons at the current (and soon to be previous) employer supervised access to the PC to do whatever magic chicken-waving makes them feel good, on the basis that they are responsible for the costs of returning the PC to fully working condition if they (as expected) FUBAR it.Don't volunteer to help. Don't offer to scrub files, or suggest they do so or use DBAN etc. Don't tell them you have previously removed all your own easily accessible confidential data. If you suffer from motor-mouth, bring a good book and STFU while they work, and finally don't sign anything that hasn't been checked by your lawyer.